If the demand curve for a good is horizontal and the price is positive, then a leftward shift of the supply curve results in
A) a price of zero.
B) an increase in price.
C) a decrease in price.
D) no change in price.
D
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The crowding out effect of expansionary fiscal policy refers to which of the following?
A) a reduction in private sector planned investment B) a reduction in the stock of inventories C) the reduction in the size of the budget deficit D) the reduction in the size of the recessionary gap
A perfectly competitive market has
A) high barriers to entry or exit. B) homogeneous products. C) to do a lot of advertising to attract buyers. D) few firms.
A tax system in which the tax rate on everyone's first $10,000 of income is 10 percent, the tax rate on everyone's second $10,000 of income is 15 percent, and the tax rate on all income over $20,000 is 25 percent is a(n)
a. proportional tax b. equitable tax c. head tax d. unit tax e. progressive tax
An increase in the price of product G will result in a(n):
a. Decrease in the demand for G b. Larger quantity of G demanded c. Smaller quantity of G demanded d. Increase in the demand for G