An increase in supply, with no change in demand, will lead to ______ _ in equilibrium quantity and ________ in equilibrium price.
A) an increase; an increase
B) an increase; a decrease
C) a decrease; an increase
D) a decrease; a decrease
Ans: B) an increase; a decrease
You might also like to view...
Use the data in the table below to answer the following question.PriceQuantity Demanded$201218171620142412301036840644448Over which price range is the demand unit-elastic?
A. $16-$14 B. $14-$12 C. $12-$10 D. $18-$16
If Mr. Smith thinks the last dollar spent on shirts yields more satisfaction than the last dollar spent on cola, and Smith is a utility-maximizing consumer, he should
a. decrease his spending on cola. b. decrease his spending on cola and decrease his spending on shirts. c. decrease his spending on shirts. d. increase his spending on cola and decrease his spending on shirts.
Three persons, A, B, and C, will use a simple majority vote to determine whether some good will be purchased. Each person's "tax share" of the purchase price of the good will be $25. Person A receives $30 worth of benefits from the good, person B receives $26 worth of benefits from the good, and person C receives $2 worth of benefits from the good. It follows that __________ person(s) will vote
for the good, __________ person(s) will vote against it, and that the outcome is __________. A) one; two; inefficient B) two; one; efficient C) one; two; efficient D) two; one; inefficient
The principal objective of the Federal Reserve System is to
A. circulate coins and paper Federal Reserve Notes. B. subsidize the income of member banks. C. help stabilize the economy through monetary policy. D. make profits to remit to the Treasury Department.