Suppose the demand and supply for strawberries decrease, but the decrease in demand is major while the decrease in supply is minor. Under these conditions
a. price increases, and quantities demanded and supplied decrease
b. price decreases, and quantities demanded and supplied increase
c. price decreases, and quantities demanded and supplied decrease
d. price increases, and quantities demanded and supplied increase
e. price remains unchanged, but quantities demanded and supplied increase
c. price decreases, and quantities demanded and supplied decrease
You might also like to view...
Assume the Congress approves increased drilling for oil in the U.S. to address the current energy shortage. People who are in favor of this policy argue that, ceteris paribus, this would cause:
A) an increase in the equilibrium price and quantity of oil. B) a decrease in the equilibrium price and quantity of oil. C) a decrease in equilibrium price and increase in the equilibrium quantity of oil. D) an increase in equilibrium price and a decrease in the equilibrium quantity of oil.
In the parable of the leaky bucket, a fundamental problem with government redistribution programs is identified. As long as the government only has "leaky buckets" at its disposal,
a. the costs of welfare programs will exceed the benefits. b. it should not try to reach complete equality in income. c. income equality will be the best policy option. d. equality of economic opportunity will reduce society's utility.
Figure 5-4
Refer to . The figure illustrates an industry that generates
a.
external benefits.
b.
external costs.
c.
no externalities.
d.
economies of scale.
In 1798, An Essay on the Principle of Population was written by
A. Adam Smith. B. Thomas Malthus. C. Karl Marx. D.David Ricardo.