Suppose that the equilibrium price of apples decreases and the equilibrium quantity of apples increases. This is best explained by:
A. an increase in the demand for apples.
B. an increase in the supply of apples.
C. a decrease in the demand for apples.
D. a decrease in the supply of apples.
Answer: B
You might also like to view...
In 2008, the Bank of England increased the country's money supply and lowered its interest rate. This policy was designed to
A) encourage people to buy more goods and services. B) shift the aggregate demand curve rightward. C) cause a movement up along the aggregate demand curve. D) Both A and B are correct.
In the used car market, adverse selection can be limited by
A) offering warranties. B) establishing loan limits. C) requiring high deductibles. D) requiring low deductibles.
An increase in the real interest rate in the United States will cause net capital outflows to ________ and cause the dollar to ________ relative to other currencies
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
A small firm in Indonesia has the following estimated production function: ln(q) = 10 + 2.6ln(L) - 0.4(ln(L))2 Derive the firm's marginal and average product of labor as functions of q and L
What is the elasticity of output with respect to labor?