A decrease in demand will cause the equilibrium price to ________ and the equilibrium quantity to ________
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
D
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What will be an ideal response?
By Marks buys a one-year German government bond (called a bund) for $400. He receives principal and interest totaling $436 one year later. During the year the CPI rose from 150 to 162
The nominal interest rate on the bond was ________, and the real interest rate was ________. A) 9%; 1% B) 9%; -1% C) 36%; 24% D) 36%; 12%
Suppose that the economy is in equilibrium at an income level of $2,000 when Ii = $200, and that the MPC = .75 . If Ii falls by $50, the equilibrium level of income will fall by
a. $50 b. $100 c. $200 d. $250 e. $400
A change in the price level will cause a shift in the expenditure schedule
a. True b. False Indicate whether the statement is true or false