Whenever the supply of a product decreases and the demand for the product increases,
a. the quantity exchanged in the market will increase.
b. equilibrium price will rise.
c. the quantity exchanged in the market will decrease.
d. equilibrium price will fall.
b. equilibrium price will rise.
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Pennsylvania's largest grower of fresh-to-market tomatoes announced in March 2009 he will no longer produce the crop. The acreage he previously devoted to tomatoes and pumpkins will be converted to field corn that is harvested by machines
Of the following, which could have led to the shift from labor intensive tomato production to field corn? A) The market price of tomatoes increased. B) Farm workers' reservation wage fell. C) The wage rate for farm workers increased. D) All of the answers are true.
The prospect of a recession in the United States would probably cause the dollar to
a. depreciate because interest rates would be expected to rise. b. depreciate because imports would be expected to rise. c. appreciate because imports would be expected to fall. d. appreciate because interest rates would be expected to decrease.
A theoretical restriction on the short-run cubic cost equation, TVC = aQ + bQ + cQ2, is
A. a > 0, b < 0, c < 0 B. a > 0, b > 0, c > 0 C. a > 0, b > 0, c < 0 D. a > 0, b < 0, c > 0
A theory or model is a simplification of reality, in much the same way that a road map shows only those features needed to get from one point to another.
a. true b. false