Suppose the price of steel decreases. In the market for automobiles, we would expect which of the following to occur?
A. both the market clearing price and the equilibrium quantity will rise.
B. the market clearing price will fall and the equilibrium quantity will rise.
C. both the market clearing price and the equilibrium quantity will fall.
D. the market clearing price will rise and the equilibrium quantity will fall.
Answer: B
You might also like to view...
The principle that states the marginal product of an input decreases as the quantity of the input increases is called:
A. diminishing marginal product. B. increasing rate of return. C. production function. D. total product optimization.
What basket of goods in used to construct the CPI?
What will be an ideal response?
Answer the following statement(s) true (T) or false (F)
1. Changes in the price of resources do not help determine supply because those resources can be replaced by substitute goods. 2. Population changes are a key determinant of demand for goods and services. 3. Mae's Restaurant is the only establishment in town that sells cinnamon rolls. Mae therefore has a monopoly on the cinnamon roll business in town. 4. Competition in an oligopoly is centered more on making one product stand out from another than it is on price. 5. Products manufactured in foreign countries by U.S. companies are included in the U.S.'s gross domestic product (GDP).
Programs designed to provide protection against unpredictable financial distress are known as:
a. social insurance programs. b. poverty programs. c. government transfers. d. negative income tax programs.