Suppose you are told that the equilibrium price of gasoline has increased, while the equilibrium quantity of gasoline has fallen. You are also told that either the demand changed or supply changed, but not both
Which of the following must have occurred? A) Demand increased.
B) Demand decreased.
C) Supply increased.
D) Supply decreased.
D
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What is a firm's minimum efficient scale?
What will be an ideal response?
China is a large open economy with an extraordinarily high saving rate
If, as seems likely, there is a decrease in desired saving in the coming years, what effects should we expect to see on China's trade balance (net capital flow), domestic real interest rate, and actual levels of saving and investment?
Drive with Us is an automobile retailer and pays floor plan financing to finance the cars they hold in inventory. If the interest rate on their floor plan financing decreases from 5 to 3 percent, Drive with Us's expected marginal cost from holding additional cars in inventory will shift ________ and the profit-maximizing number of cars to hold in inventory will ________.
A) upward; increase B) upward; decrease C) downward; decrease D) downward; increase
The sum of current account surplus and capital account surplus is zero.
Answer the following statement true (T) or false (F)