With a downsloping demand curve and an upsloping supply curve for a product, a decrease in resource prices will:
A. decrease equilibrium price and quantity.
B. decrease equilibrium price and increase equilibrium quantity.
C. increase equilibrium price and decrease equilibrium quantity.
D. increase equilibrium price and quantity.
Answer: B
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When interest rates go up, people are
a. More likely to borrow b. Less likely to borrow c. Does not affect a person's consumption d. None of the above
What problems would result from the measurement of the sales of all goods and services produced?
If a firm in a competitive price-searcher market raises its price, it will
a. lose all of its sales. b. increase its sales. c. lose only some of its sales. d. have to go out of business.
In which of the following countries has economic growth been sufficiently high that income would double every ten years?
a. India b. Mexico c. South Korea d. Zimbabwe