A decrease in demand, with no change in supply, will lead to ________ in equilibrium quantity and ________ in equilibrium price.
A) an increase; an increase
B) an increase; a decrease
C) a decrease; an increase
D) a decrease; a decrease
Ans: D) a decrease; a decrease
You might also like to view...
Some people choose to live close to the city center; others choose to live away from the city and take a longer commute to work every day. Does picking a location with a longer commute imply a failure to optimize?
What will be an ideal response?
Allocative efficiency is achieved when
A) firms produce the goods and services that consumers value most. B) firms produce goods and services at the lowest cost. C) there are no shortages or surpluses in the market. D) goods and services are fairly distributed among consumers in an economy.
Refer to the information provided in Table 33.3 below to answer the question(s) that follow. Table 33.3
Refer to Table 33.3. If the exchange rate is $1 = 1 euro, then
A. the United States will import chocolate and Belgium will import raspberries. B. the United States will import both raspberries and chocolate. C. Belgium will import chocolate. D. Belgium will import both raspberries and chocolate.
A monopolistic ally competitive firm is producing at an output level in the short run where average total cost is $4.50, price is $4.00, marginal revenue is $2.50, and marginal cost is $2.50. This firm is operating:
A. With positive profits B. With a loss C. At the break-even point D. At a non-optimal level of output