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Unformatted text preview: National Income) is: (a) 300 (b) 400 (c) 500 (d) 600 (e) 700 3. Assume that the market for the stock of Microsoft begins in equilibrium. Then, both buyers and sellers expect that the new Linux (a competitor of Microsoft Windows) will be a large success, reduing Microsoft sales . When the new equilibrium is reached (a) the price and quantity of the stock will both have risen (b) the price and quantity of the stock will both have fallen (c) the quantity of the stock will fall and the price will rise (d) the quantity of the stock will fall but the effect on price cannot be determined (e) the price of the stock will fall but the effect on quantity cannot be determined...
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This note was uploaded on 04/30/2011 for the course ECON 101 taught by Professor Balaban during the Spring '07 term at UNC.
- Spring '07
- Marginal Propensity To Consume