A decrease in the equilibrium price for a product will result
A) when there is a decrease in demand and a decrease in the number of firms producing the product.
B) when there is an increase in supply and a decrease in demand for the product.
C) when the quantity demanded for the product exceeds the quantity supplied.
D) when there is a decrease in supply and a decrease in demand for the product.
B
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The net benefit of a particular alternative equals:
A) the benefits received from the alternative plus the costs incurred in choosing the alternative. B) the benefits received from the alternative divided by the costs incurred in choosing the alternative. C) the costs incurred in choosing the alternative divided by the benefits received from the alternative. D) the benefits received from the alternative minus the costs incurred in choosing the alternative.
Wage negotiations in baseball can fit the bilateral monopoly situation when a star player negotiates with an owner. Explain how collective bargaining would be used in wage negotiations and the role of player strikes
If air travel and bus travel are substitutes,
a. an increase in the price of bus travel will decrease the demand for air travel. b. a decrease in the price of bus travel will decrease the demand for air travel. c. an increase in the price of bus travel will generally have no effect on the demand for air travel. d. an increase in the price of bus travel will shift the demand curve for air travel to the left.
Economists refer to this pattern, the ___________________________________, which means that as a person receives more of a good, the additional or marginal utility from each additional unit of the good declines.
A. law of trade-offs B. law of diminishing marginal utility C. production possibilities frontier D. law of increasing marginal utility