If the demand for a product falls and the supply stays the same
A. the market clearing price will fall and the equilibrium quantity will rise.
B. both the market clearing price and the equilibrium quantity will fall.
C. the market clearing price will rise and the equilibrium quantity will fall.
D. both the market clearing price and the equilibrium quantity will rise.
Answer: B
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When the supply curve is flat, a tariff on imported goods
a. always increases the welfare of Americans. b. always decreases the welfare of American.. c. has no effect on the welfare of Americans. d. only affects the welfare of Americans if the goods are also made domestically .
The slope of the aggregate demand curve illustrates that as the price level rises,
A. real GDP demanded decreases. B. real GDP demanded increases. C. the aggregate demand curve shifts rightward. D. the aggregate demand curve shifts leftward.
Any point on the aggregate demand schedule must also be
A) a point that clears the market for real money balances. B) a combination of real interest rates and income where aggregate desired expenditures is in balance. C) a point where money demanded is equal to money supplied. D) all of the above.
Which of the following would help to avert a healthcare crisis?
a. requiring employers to pick up 100 percent of the healthcare costs for their employees b. discouraging medical savings accounts since these provide additional funds for medical care, and therefore, they are likely to drive up medical prices c. discouraging the purchase of health insurance plans with small co-payments d. structural changes that would increase the competitiveness of the health insurance and medical services markets