Suppose that only one curve shifts. If you observe that the equilibrium price increased while the equilibrium quantity decreased, then the market experienced a(n):
A. decrease in supply.
B. increase in demand.
C. increase in supply.
D. decrease in demand.
Answer: A
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The demand and the supply for a good are each neither perfectly elastic nor perfectly inelastic. If a sales tax on sellers of the good is imposed, the tax is paid by
A) only buyers. B) only sellers. C) both buyers and sellers. D) neither buyers nor sellers.
The competitive firm's supply curve is equal to
A) its marginal cost curve. B) the portion of its marginal cost curve that lies above AC. C) the portion of its marginal cost curve that lies above AVC. D) the portion of its marginal cost curve that lies above AFC.
Goods that are both non-excludable and non-rival are referred to as _____
a. common resources b. natural resources c. public goods d. private goods
used in response to recession
What will be an ideal response?