If the supply of a good increases, the equilibrium price of that good
A. rises while quantity demanded also rises.
B. falls while quantity demanded also falls.
C. rises while quantity demanded falls.
D. falls while quantity demanded rises.
Answer: D
You might also like to view...
Refer to the above figure. As the real national income expands from Y2 to Y3,
A) tax revenues fall. B) a budget deficit occurs. C) government transfers rise. D) a budget surplus occurs.
If the demand effect dominates during a currency depreciation, then
a. real GDP should fall. b. real GDP should increase. c. the price level should fall. d. net exports should decrease.
The demand curve confronting a nondiscriminating pure monopolist is:
A. more elastic than the demand curve confronting a competitive firm. B. derived by vertically summing the individual demand curves competitors. C. the same as the industry's demand curve. D. horizontal.
Countries that lack well-defined property laws and legal structures:
A. will have much lower transaction costs associated with any level of lending. B. have large secondary financial markets because the primary markets do not exist. C. will not have any financial markets at all. D. will not develop as fast economically as counties with clear property rights and a formal legal system.