If we observe a decrease in the price of a good and a decrease in the amount of the good bought and sold, this could be explained by a(an):
A. increase in the supply of the good.
B. increase in the demand for the good.
C. decrease in the demand for the good.
D. decrease in the supply of the good.
Answer: C
You might also like to view...
Between 1960 and 2017 U.S. GDP, measured in dollars of constant purchasing power, expanded by a factor of 5. However, the standard of living only increased by 3 times over this period. Explain the difference.
What will be an ideal response?
To arbitrage a price difference between two markets, you should:
A) sell in the low-price market and buy in the high-price market. B) buy in the low-price market and sell in the high-price market. C) sell in both markets to capture a lower average "market price." D) none of the above
The government budget involves:
A. money coming in as tax revenues. B. money going out through government purchases. C. money going out to individuals for programs that do not involve goods or services. D. All of these are true.
Private goods are nonexclusive goods
Indicate whether the statement is true or false