A(n) ______ in supply and a(n) ______ in demand will result in a decrease in the equilibrium price.
a. lack of change; increase
b. decrease; lack of change
c. decrease; increase
d. increase; decrease
d. increase; decrease
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Which of the following is characteristic of a perfectly competitive market? a. There is free entry into and exit from the market
b. Individual firms can exert a perceptible influence on the market price. c. Firms in the market produce a differentiated product. d. All of the above are true.
A new technological innovation would increase
a. the labor force. b. labor hours worked. c. labor productivity. d. population growth.
A bowed outward production possibilities curve occurs when
A) opportunity costs are constant. B) resources are not scarce. C) additional units of output of one good necessitate increased reductions in the other good. D) the society is operating on the production possibilities curve.
Assume that you own a small boutique hotel. In an attempt to raise revenue, you reduce your rates by 20 percent. However, your revenue falls. What does this indicate about the demand for your boutique hotel rooms?
A) Boutique hotel rooms are inferior goods. B) Demand is inelastic. C) The demand curve for your hotel rooms is vertical. D) Demand is elastic.