Which of the following statements is true?
A) A decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in quantity demanded.
B) An increase in demand causes an increase in equilibrium price; the increase in price causes supply to increase.
C) If demand increases and supply decreases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater.
D) If both demand and supply decrease, there must be a decrease in equilibrium price; equilibrium quantity may either increase or decrease.
A
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A) turnover B) mismatch C) cyclically D) seasonally
One difference between futures and options contracts is
A) funds change hands daily in the case of options but not with futures. B) funds change hands daily in the case of futures, but not with options. C) in the case of futures funds only change hands when they are exercised. D) futures are designed to reduce risk while options are not.
Firms that are most likely to buy marketable pollution rights are those that produce the most pollution per unit of output produced
Indicate whether the statement is true or false
If the Fed raises the discount rate at the same time it conducts an open market sale, it follows that the money supply will
A) fall. B) rise. C) remain unchanged. D) There is not enough information to answer the question.