In the Market for Tacos, You Observe That the Equilibrium

question 288

Multiple Choice

In the market for tacos, you observe that the equilibrium price and quantity have increased. This can be caused only by:

• A)an increase in the price of beef.
• B)an increase in the wages of taco shop workers.
• C)fewer taco shops.
• D)an increase in the incomes of people who eat tacos.

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Definitions:

Promissory Breach

Occurs when a party indicates by their actions, or explicitly states, that they will not fulfill their obligations under a contract.

Implied Warranty

A guarantee embedded in transactions by law, based on the assumption that a product will meet certain standards of quality and reliability.

Escrow Account

A financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction.

Common Area

Shared spaces in a property such as hallways, lobbies, and amenities available to all occupants or tenants.