Suppose there is a simultaneous increase in demand and decrease in supply, what effect will this have on the equilibrium price?
A. It will rise.
B. It will fall.
C. It will remain the same.
D. It may rise or fall.
Answer: A
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If business executives become more optimistic about the future, we would expect that
A) the investment curve would shift outward to the right. B) the saving function would shift up. C) the consumption curve would shift up. D) investment spending would decrease.
A group price discriminator sells its product in Florida for three times the price it sets in New York
Assuming the firm faces the same constant marginal cost in each market and the price elasticity of demand in New York is -2.0, the demand in Florida A) has an elasticity of -6.0. B) is more price elastic than the demand in New York. C) has an elasticity of -1.2. D) has an elasticity of -0.67.
Which of the following is not held constant in a supply schedule?
a. production technology b. the price of the good c. the prices of inputs d. expectations
A consumer notices that the price of a bottle of SpringFresh perfume increased from $30 to $40. Which of the following would most likely cause this increase?
a. a significant increase in minimum wage b. a more efficient bottling system c. stricter product inspections d. a large advertising campaign