If supply decreases along a given demand curve,
a. an excess quantity demanded will be created, increasing the equilibrium price and causing equilibrium quantity to fall
b. an excess quantity supplied will be created, lowering the equilibrium price and causing equilibrium quantity to rise
c. an excess quantity demanded will be created, raising the equilibrium price and quantity
d. an excess quantity supplied will be created, lowering the equilibrium price and quantity
e. price will fall, shifting the demand curve outward, raising the equilibrium quantity
A
You might also like to view...
The majority of evidence points to the fact that, in the last decade in the United States, labor productivity has
A) stayed the same. B) increased. C) decreased in the manufacturing sector but increased in the service sector. D) decreased.
Assume that at the current level of output, price equals marginal revenue, but is less than average total cost. So long as price is greater than average variable cost, the firm should continue to operate in the short run to minimize its losses
Indicate whether the statement is true or false
A good that is rival but nonexclusive is called
a. a private good b. a public good c. a quasi-private good d. an external good e. an open access good
Jordan wants to sell her wedding gown for $250, but her cousin Jessica offered her $375 for it. If the gown is sold for $375, what is Jordan's producer's surplus
a. $125 b. $25 c. $625 d. $373 e. $250