If the legal price floor is set below the equilibrium price in a market, then a surplus will develop in the market.
Answer the following statement true (T) or false (F)
False
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If demand falls and supply falls, equilibrium price will _____ and equilibrium quantity will _____.
Fill in the blank(s) with the appropriate word(s).
Suppose a bank has $10,000 in deposits and $1,000 in reserves. The required reserve ratio is 5%. Which of the following occurs if the required reserve ratio is increased to 10%?
A) The bank's required reserves will decrease to $500. B) The bank's excess reserves will increase to $1,000. C) The bank's required reserves will increase to $1,000. D) The bank's ability to create loans increases by 5%.
If Mario's Pizza and Angelo's Pizza are pizza delivery companies in tacit collusion and Mario's Pizza launches a new advertising campaign that states that it will meet any competitor's price on a comparable pizza, Mario's Pizza might be tacitly signaling to Angelo's Pizza that they are willing to ________.
A) cut price is exactly half B) maintain current the price C) lower their price D) raise their price
Assume Bryce's budget constraint is represented by line B in the graph shown. Which of the following would cause Bryce's budget constraint to shift to A?
A. The price of books increased.
B. The price of books decreased.
C. The price of movie tickets increased.
D. The price of movie tickets decreased.