If the supply curve for housing is perfectly inelastic, a reduction in demand will cause the equilibrium price to:
a. rise and the equilibrium quantity to fall
b. rise and the equilibrium quantity to stay the same.
c. fall and the equilibrium quantity to fall.
d. fall and the equilibrium quantity to stay the same.
d
You might also like to view...
Commercial banks are financial intermediaries, as are ________
A) household savers B) state and local governments C) insurance companies D) organized exchanges
An example of an activity that is likely to generate benefit (positive) externality is
A) a well manicured lawn of your neighbor. B) growing wild flowers on city street islands. C) fireworks on the 4th of July. D) an educated workforce. E) All of the above
The unit of value function of money refers to how we think about and record a transaction, whereas the means of payment function refers to how we actually pay for the items
a. True b. False
Actions by the Federal government that decrease the progressivity of the tax system:
A. Decrease the amount of government spending B. Increase the effect of automatic stabilizers C. Decrease the effect of automatic stabilizers D. Increase the multiplier effect