Assume a competitive market is in equilibrium. There is an increase in demand, but no change in supply. As a result the equilibrium price ________, and the equilibrium quantity ________
A) rises; increases
B) rises; does not change
C) falls; does not change
D) falls; decreases
E) falls; increases
A
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In the long run, ________ dominate exchange rate movements
A) short-run inflation differentials B) long-run inflation differentials C) short-run relative price changes D) All of the above
A business manager who observes that prices in general keep rising might infer, correctly, that now is a good time to ________
A) invest to expand the business B) raise the price of her product C) expect an increase in business profits D) expect a higher return on personal savings E) all of the above
How are rule-based policies similar to adaptive expectations?
What will be an ideal response?
In communism, central planners decide which of the following?
a. what goods and services will be produced b. how much will be produced c. who will produce and consume the goods and services d. All of the above are correct.