A decrease in demand and an increase in supply will lead to
A) an unambiguous decrease in quantity, but the effect on price is indeterminate.
B) an unambiguous decrease in price, but the effect on quantity is indeterminate.
C) unambiguous decreases in both price and quantity.
D) unambiguous increases in both price and quantity.
Ans: B) an unambiguous decrease in price, but the effect on quantity is indeterminate.
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Refer to Table 14-3. Is there a dominant strategy for Nigeria and, if so, what is it?
A) Yes, it has a dominant strategy depending on what Saudi Arabia does. B) Yes, the dominant strategy is to produce a high output. C) Yes, the dominant strategy is to produce a low output. D) No, there is no dominant strategy.
The productivity changes resulting from research and development would be best represented by:
A. an upward shift of a firm's production function. B. a downward shift of a firm's production function. C. the firm's isoquants shifting away from the origin. D. a movement to the northeast along the firm's production function.
Under a system of pollution taxes, we expect firms to cut pollution until the marginal benefit from tax savings equals the marginal increase in production costs due to decreasing pollution.
Answer the following statement true (T) or false (F)
Behavioral economics deals with
A. only theories without justification from empirical evidence. B. bounded rationality. C. unbounded willpower. D. the assumption that people are always selfish.