Which of the following events must cause equilibrium quantity to rise?
a. demand increases and supply decreases
b. demand and supply both decrease
c. demand decreases and supply increases
d. demand and supply both increase
d
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In recent years, each 1 percent drop in output is associated with the loss of more than
a. five million jobs b. one million jobs c. half a million jobs d. two hundred thousand jobs e. one hundred thousand jobs
A company's credit risk can be high even if it is solvent and well-capitalized, if there is:
a. Actually, it is impossible for a solvent, well-capitalized company to have a high credit risk. b. Insufficient cash earnings and/or insufficient access to the credit markets. c. High expected inflation. d. Political and central bank instability in the nation(s) where it operates. e. A high real, risk-free interest rate.
You and your college roommate eat three packages of Ramen noodles each week. After graduation last month, both of you were hired at several times your college income. Your roommate still enjoys Ramen noodles very much and buys even more, but you plan to buy fewer Ramen noodles in favor of foods you prefer more. When looking at income elasticity of demand for Ramen noodles, yours would
a. be negative and your roommate's would be positive. b. be positive and your roommate's would be negative. c. be zero and your roommate's would approach infinity. d. approach infinity and your roommate's would be zero.
A price change will have no effect on total revenue if demand is
A. Perfectly elastic.
B. Unitary elastic.
C. Inelastic.
D. Elastic.