Suppose that today the market for lima beans is in equilibrium. Tomorrow both the supply and demand curves for lima beans will shift to the left. As a result, the equilibrium price __________ and the equilibrium quantity will __________
a. will fall; fall
b. will fall; rise
c. will rise; fall
d. cannot be determined; fall
e. cannot be determined; rise
D
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Differences in the stock of technology between nations are an example of a(n):
A) proximate cause of prosperity. B) implicit cause of prosperity. C) explicit cause of prosperity. D) fundamental cause of prosperity.
Refer to Figure 2-3. Sergio Vignetto raises cattle and llamas on his land. His land is equally suitable for raising either animal. Which of the graphs in Figure 2-3 represent his production possibilities frontier?
A) Graph A B) Graph B C) Graph C D) either Graph A or Graph C E) either Graph B or Graph C
Which of the following is an example of an injection into the circular flow of income and expenditure?
a. Consumption b. Exports c. Taxes d. Saving e. Government borrowing
Using an aggregate demand graph, illustrate the impact of an increase in the growth rate of U.S. GDP relative to the growth rate of foreign GDP
What will be an ideal response?