A decrease in the number of sellers in the market causes
a. the supply curve to shift to the left
b. the supply curve to shift to the right.
c. a movement up and to the right along a stationary supply curve.
d. a movement downward and to the left along a stationary supply curve.
a
You might also like to view...
Equilibrium GDP occurs when total spending equals total output.
Answer the following statement true (T) or false (F)
Suppose the labor supply equation is L = (W/3) - (4/3). The wage rate is initially 5. What is the amount of producer surplus here?
What will be an ideal response?
In the 1980s, President Ronald Reagan argued that high tax rates distorted economic incentives to work and save. In the 1990s, President Bill Clinton argued that the rich were not paying their fair share of taxes. Which of the following statements best summarizes the economic theories behind the differing philosophies?
a. President Reagan was concerned about vertical equity, whereas President Clinton was concerned about horizontal equity. b. President Reagan was concerned about average tax rates, whereas President Clinton was concerned about horizontal equity. c. President Reagan was concerned about marginal tax rates, whereas President Clinton was concerned about vertical equity. d. None of the above is correct.
A competitive market is in long-run equilibrium. If demand increases, we can be certain that price will
a. rise in the short run. Some firms will enter the industry. Price will then rise to reach the new long-run equilibrium. b. rise in the short run. Some firms will enter the industry. Price will then fall to reach the new long-run equilibrium. c. fall in the short run. All, some, or no firms will shut down, and some of them will exit the industry. Price will then rise to reach the new long-run equilibrium. d. not rise in the short run because firms will enter to maintain the price.