Holding demand constant, a reduction in supply leads to
A) lower prices and higher quantity demanded.
B) lower prices and lower quantity demanded.
C) higher prices and higher quantity demanded.
D) higher prices and lower quantity demanded.
Answer: D
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_____________ advantage can be the result of a country’s natural endowment.
a. Absolute b. Real c. Focused d. Micro
An increase in the price level causes the value of money to _____. Therefore, people will want to hold ____ money, because the cost of their purchases has increased
Fill in the blank(s) with correct word
If monetary policymakers do not change their inflation target and aggregate demand shifts left:
A. there will be an increase in inflation in the long run. B. it will result in a permanent reduction in inflation. C. there will be a temporary decrease in output. D. potential output will decrease.
The graph shows the labor market for painters. The lower the wage rate, the ________ is the quantity of painters that firms demand and the ________ is the quantity of painters that households are willing to supply
A) greater; smaller B) greater; greater C) smaller; greater D) smaller; smaller E) None of the above answers is correct because both the demand and supply curves will shift in response to the change in the wage rate.