Holding supply constant, an increase in demand leads to
A) lower prices and higher quantity supplied.
B) lower prices and lower quantity supplied.
C) higher prices and higher quantity supplied.
D) higher prices and lower quantity supplied.
C
You might also like to view...
A local pizzeria raised its price from $9 to $11 for each pizza and the sales of its pizza decreased from 150 to 100 per day. What is the price elasticity of demand in this case?
A) 1/2 B) -2 C) -1/2 D) 2
The most powerful person at the Fed is
a. a director of a Federal Reserve bank b. a member of the Board of Governors c. a district bank president d. the president of the U.S. e. the chairman of the Board of Governors
Which of the following observations is true?
a. Increase in taxes shifts the consumption schedule upward. b. Tax reductions increase equilibrium GDP. c. Taxes reduce total spending directly. d. Taxes do not have a multiplier effect on equilibrium GDP.
If there is an increase in foreign financial investment in the United States as the result of large U.S. budget deficits and attractive interest yields,
a. fiscal policy will be more expansionary since there will be no crowding-out effect. b. fiscal policy will be more expansionary since U.S. residents will increase their savings, so they can repay the foreigners in the future. c. foreign exchange value of the dollar will depreciate, which will lead to an increase in net exports and aggregate demand. d. foreign exchange value of the dollar will appreciate, which will lead to a decrease in net exports and aggregate demand.