Each of the statements in questions 27 through 45 describes…
Each of the statements in questions 27 through 45 describes a characteristic of suppliers, demanders, or a public policy. Please analyze what will happen in each case. Assume, unless the statement suggests otherwise, that the market is competitive and without any distortions or pathologies other than those that are specific to the statement. Also assume, unless the statement suggests otherwise, that for those statements dealing with a public policy, the policy described affects the market outcome in some way, but not necessarily in a socially optimal way. Assume, unless the statement suggests otherwise, short run. Select your answer to each question from the available options.