If demand and supply both decrease,
A. the equilibrium quantity definitely will decrease, and the market clearing price definitely will increase.
B. the equilibrium quantity definitely will decrease, and the market clearing price definitely will decrease.
C. the market clearing price definitely will decrease, but the change in the equilibrium quantity cannot be determined without more information.
D. the equilibrium quantity definitely will decrease, but the change in market clearing price cannot be determined without more information.
Answer: D
You might also like to view...
Tax influence of the elasticity of demand
What will be an ideal response?
When a society is more equal:
A. the more the economy grows, so the best economy is the most equal. B. economic growth will provide the most resources for its disadvantaged members. C. the more everyone gains when the economy improves, but that doesn't mean the most equal society is the best society. D. economic growth will create imbalance, and the government will need to work to equalize incomes.
Suppose that both nominal GDP and prices double. We can conclude that real output:
A. doubled. B. fell. C. more than doubled. D. remained constant.
One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money. B. by increasing government spending. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.