In the market for oranges, the demand and supply of oranges decrease by the same amount. The equilibrium quantity will ________ and the equilibrium price will ________
A) decrease; not change
B) decrease; fall
C) remain the same; either rise or fall
D) remain the same; rise
A
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The law of increasing relative costs, depicted by the concavity of the production possibilities frontier, is most closely related to the
A. downward slope of the demand curve. B. upward slope of the demand curve. C. downward slope of the supply curve. D. upward slope of the supply curve.
Your grandfather tells you that he earned $7,000/year in his first job in 1961. You earn $35,000/year in your first job in 2016. You know that average prices have risen steadily since 1961. You earn
A) less than 5 times as much as your grandfather in terms of nominal income. B) 5 times as much as your grandfather in terms of real income. C) less than 5 times as much as your grandfather in terms of real income. D) more than 5 times as much as your grandfather in terms of real income.
The major similarity between monopolistic competition and perfect competition is
A) the shape of the demand curve. B) that both assume many buyers and sellers. C) price equals marginal revenue in each. D) both assume products are differentiated.
A "rational terrorist" will react to the increased security at U.S. airports by
A. attacking U.S. airports. B. attacking other targets that are as visible but less defended. C. attacking other highly-defended targets. D. ending all attacks.