If the price of hot dogs were to decrease, which of the following changes would we expect to occur in the hot dog bun market?
a. The equilibrium price of hot dog buns would decrease and the quantity of hot dog buns sold would increase.
b. The equilibrium price of hot dog buns would increase and the quantity of hot dog buns sold would decrease.
c. The equilibrium price of hot dog buns would increase and the quantity of hot dog buns sold would increase.
d. The equilibrium price of hot dog buns would decrease and the quantity of hot dog buns sold would decrease.
e. The equilibrium price of hot dog buns would stay the same and the quantity of hot dog buns sold would increase.
c
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Some firms practice odd pricing because
A) it is a way to price discriminate. B) it is too difficult for sellers to reeducate buyers into accepting even prices. C) it lowers transactions costs. D) they believe that customers will buy a larger quantity with an odd price.
To accurately draw a labor supply curve, there should be a relationship between _______ and __________.
A. the wage rate; utility B. total expenditures; the wage rate C. the wage rate; hours worked D. taxes; utility
According to aggregate demand and supply analysis, the rising oil prices coupled with the global financial crisis in 2007-2008 caused the unemployment rate to ________ and the level of real aggregate output to ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
The quantity equation makes the demand for money depend on
A) the unemployment rate and the level of interest rates. B) the inflation rate and the unemployment rate. C) interest rates and the unemployment rate. D) None of these.