Which of the following would cause an increase in the equilibrium price and decrease in the equilibrium quantity of watermelon?
A) a decrease in demand and an increase in supply
B) a decrease in supply
C) an increase in demand and an increase in supply greater than the increase in demand
D) an increase in demand and an increase in supply
Answer: B
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If we use GDP to measure our standard of living, then our procedure is
A) accurate because our standard of living depends solely on goods and services. B) inaccurate because our standard of living only depends on used goods and services. C) inaccurate because our standard of living does not depend only on goods and services. D) inaccurate because our standard of living has nothing to do with goods and services. E) accurate only if we use nominal GDP rather than real GDP.
Which set of goals can, at times, conflict in the short run?
A) high employment and economic growth B) interest rate stability and financial market stability C) high employment and price level stability D) exchange rate stability and financial market stability
If the Fed decreases the required reserve ratio at a time when banks are holding no excess reserves, the Fed is: a. forcing banks to increase the money supply
b. forcing banks to decrease the money supply. c. making it possible for banks to increase the money supply but not forcing them to do so. d. making it possible for banks to decrease the money supply but not forcing them to do so. e. conducting open market operations but not changing the money supply.
An increase in the marginal benefit arising from a specialized investment will cause the optimal contract length to:
A. increase. B. decrease. C. either increase or decrease. D. remain constant.