Which of the following is likely to result in a higher equilibrium price?
a. An increase in both demand and supply
b. A decrease in both demand and supply.
c. An increase in demand and a decrease in supply.
d. A decrease in demand and an increase in supply.
c
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An increase in the interest rate will: a. increase the amount of money borrowed by firms
b. decrease the amount of money borrowed by firms. c. have an ambiguous effect on the amount of money borrowed by firms. d. have no effect on the amount of money borrowed by firms.
The relationship between changes in interest rates and changes in the level of investment is depicted by the downward-sloping investment curve
Indicate whether the statement is true or false
List three primary ways in which profits above “normal” levels can be earned.
What will be an ideal response?
Answer the following statements true (T) or false (F)
1. Tariffs and import quotas meant to increase domestic employment also eliminate domestic jobs in export industries. 2. Whenever a foreign producer is selling a product like steel at a lower price than domestic producers, then dumping is being practiced and must be corrected. 3. The World Trade Organization was established by the United States to force other nations to open their markets to U.S. goods. 4. NAFTA is a trade agreement that covers trade between the United States and the European Union.