When the supply of a good decreases, there will be a(n):
A. decrease in the quantity demanded.
B. decrease in demand.
C. decrease in buyers' reservation prices for the good.
D. increase in the quantity demanded.
Answer: A
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A price ceiling leads to a(n) ________ if below equilibrium price
A) increase in social well-being B) increase in producer surplus C) decrease in market demand D) decrease in total surplus
Why might governments choose to dispense with the market mechanism for directing development? What problems will arise?
What will be an ideal response?
The change in price that results from a leftward shift of the supply curve will be greater if
A) the demand curve is relatively steep than if the demand curve is relatively flat. B) the demand curve is relatively flat than if the demand curve is relatively steep. C) the demand curve is horizontal than if the demand curve is vertical. D) the demand curve is horizontal than if the demand curve is downward sloping.
Which of the following is most likely to be common property?
A) lawn in a privately owned golf club B) farm raised catfish in Alabama C) tuna in the Pacific Ocean D) cattle in a Texas ranch