In which of the following situations will market clearing price increase and the equilibrium quantity decrease?
A) an increase in demand with no change in supply
B) an increase in supply with no change in demand
C) a decrease in supply with no change in demand
D) a decrease in demand with no change in supply
Answer: C
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In the figure above, the richest 20 percent of all households receive what share of all income?
A) 10 percent B) 20 percent C) 30 percent D) 40 percent
Economists and accountants both think of profits as total revenue minus total cost, but what they include in costs may differ
a. True b. False Indicate whether the statement is true or false
If the nominal wage is $10 per hour and the expected price level is 2 and the actual price level is 4, then:
a. the expected real wage rate is greater than the actual real wage rate. b. the expected real wage rate is greater than the actual nominal wage rate. c. the expected real wage rate is less than the actual real wage rate. d. the actual real wage rate is greater than the actual nominal wage rate.
The direct effect of an increase in the money supply is to
A. decrease aggregate demand as people anticipate future economic problems. B. increase interest rates as people anticipate higher inflation in the future. C. increase aggregate demand as people try to spend their excess money balances. D. raise interest rates as people increase their saving.