An increase in demand and a decrease in supply, will lead to a(n) ________ in equilibrium quantity and a(n) ________ in equilibrium price.
A) decrease; decrease
B) indeterminate change; increase
C) indeterminate change; decrease
D) increase; indeterminate change
Ans: B) indeterminate change; increase
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Assume that you have just returned to the United States from a summer vacation in Russia, where you exchanged American dollars for Russian rubles. Your economic actions can be said to have:
a. increased the supply of American dollars in Russia. b. decreased the supply of Russian rubles in America. c. decreased the supply of American dollars in Russia. d. increased the demand for American dollars in America. e. increased the supply of Russian rubles in Russia.
If the MPC changed from 0.8 to 0.6, then the spending multiplier would change from a. 5 to 2.5
b. 2.5 to 5. c. 0.8 to 0.6. d. 8 to 6.
Which of the following causes average total cost to rise at high levels of output?
a. diminishing marginal product b. average fixed costs c. plant underutilization d. economies of scale
Because the demand for wheat tends to be inelastic, the development of a new, more productive hybrid wheat would tend to
a. increase the total revenue of wheat farmers.
b. decrease the total revenue of wheat farmers.
c. decrease the demand for wheat.
d. decrease the supply of wheat.