If the supply of a good decreased, what would be the effect on the equilibrium price and quantity?
a. Price would increase, and quantity would decrease.
b. Price would decrease, and quantity would decrease.
c. Price would increase, and quantity would increase.
d. Price would decrease, and quantity would increase.
a
You might also like to view...
Q: How many economists does it take to change a light bulb?
A: All. Because then you will generate employment, more consumption, moving the aggregate demand curve to the right. This joke represents the view of A) classical economists. B) economists who contend that money illusion never occurs. C) Keynesian economists. D) economists who conclude that wages and prices are very flexible.
We showed that, when demand is linear and marginal cost is constant, the Stackelberg leader produces the monopoly output while the Stackelberg follower produces half the monopoly output. If the leader and follower now enter a simultaneous quantity setting game, why can't the leader maintain the same equilibrium?
What will be an ideal response?
What is a public good?
What will be an ideal response?
In the simple Keynesian expenditure model, a marginal propensity to consume of .9 leads to an expenditure multiplier of
A) .1. B) .9. C) 9. D) 10.