If demand increases while supply decreases, then the equilibrium price
A) always increases.
B) always decreases.
C) may increase, decrease, or stay the same.
D) never changes.
A
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Refer to the scenario above. Earthland's current account would show a balance of ________
A) -$10 billion B) $10 billion C) -$4 billion D) $14 billion
Price wars are ________ likely to occur when the industry is ________
A) more; a monopoly. B) more; an oligopoly. C) more; perfect competition. D) equally; monopoly, oligopoly, and perfect competition.
Your comparative advantage in a specific area is determined by
A) minimum wage laws, health and safety standards and marginal tax rates. B) the market value of the skill relative to your opportunity cost of supplying it. C) the absolute value of the skill in the performance of a specific job. D) the comparative positions of the wealthy, the middle income individuals and low income individuals.
An increase in which of the following will shift the economy's productivity (GDP/L) curve?
a. the quantity of laborers b. technology c. capital d. output e. consumption