A decrease in demand with the supply held constant leads to:
a. an increased equilibrium price and a decreased equilibrium quantity.
b. a decreased equilibrium price and a decreased equilibrium quantity.
c. an increased equilibrium price and an increased equilibrium quantity.
d. a decreased equilibrium price and an increased equilibrium quantity.
b
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Bill Gates is a founder of Microsoft and the world's richest individual. Suppose Microsoft sells more software and Mr. Gates acquires another billion dollars in wealth
Simultaneously, suppose a burglar whose income is well below average broke into Bill Gates' house and stole a million dollars' worth of antiques. Using the "it's not fair if the rules aren't fair" approach to fairness, is Mr. Gates' acquisition of additional wealth fair? Is the (poor) thief's acquisition fair?
The price elasticity of supply measures the responsiveness of quantity supplied to a change in ____________.
a. quantity demanded. b. demand c. price. d. supply.
The best example of decision-making at the margin would be
What will be an ideal response?
Look at this producer surplus graph. If Caroline is already producing wheat at P1, what happens when the price moves to P2?
a. Her producer surplus will decrease.
b. Her producer surplus will increase.
c. Nothing happens because she is already producing at a lower price.
d. She will have to produce more to make the same total profit.