If there is a decrease in both the supply and demand for a good, which of the following will definitely occur?
a. The price of the good will increase.
b. The price of the good will decrease.
c. The equilibrium quantity will increase.
d. The equilibrium quantity will decrease.
D
You might also like to view...
A monetarist economist believes that if the economy was left alone, it would rarely operate at full employment
Indicate whether the statement is true or false
Under the old Soviet version of communism in the U.S.S.R., the questions of 'What?', 'How?', and 'For whom?' were answered by
A. a democratically elected congress called the Duma. B. the law of supply and demand. C. the decisions of hundreds of millions of individual consumers. D. a government planning committee.
Mexico can produce vine-ripened tomatoes at a lower opportunity cost than firms in the United States. Through trade negotiations, the United States lifted quotas limiting the import of tomatoes from Mexico. Some firms in Florida, in the face of this new competition, had to close their farms and their workers lost their jobs. Many of the workers could not find new jobs right away. What type of unemployment describes the workers' situation?
A. Cyclical unemployment B. Structural unemployment C. Full unemployment D. Target unemployment
The minimum point on the average variable cost curve is called
A) the shutdown point. B) the break-even point. C) the loss-minimizing point. D) the point of diminishing returns.