Exhibit 4-6 Demand and supply curves
If the market supply increases and, simultaneously, market demand decreases, the new equilibrium will show:
A. market price will decrease, and market quantity exchanged could increase, decrease, or remain unchanged.
B. market price will increase, and market quantity exchanged will decrease.
C. market price will increase, and the quantity exchanged could increase, decrease, or remain the same.
D. market price could increase, decrease, or remain the same, and quantity exchanged will increase.
Answer: A
You might also like to view...
Which of the following financial institutions does NOT have to meet minimum reserve ratios?
i. the Fed ii. commercial banks iii. credit unions A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
In the above figure, the short-run aggregate supply curve is SAS and the aggregate demand curve is AD. An inflationary gap exists
A) if the long-run aggregate supply curve is LAS1. B) if the long-run aggregate supply curve is LAS2. C) if the long-run aggregate supply curve is LAS3. D) All of the above answers are correct.
Price will always exceed marginal cost for the profit-maximizing monopolist, or any price-setter firm for that matter
Indicate whether the statement is true or false
The big-push strategy is thought to be effective in an LDC because it
a. is financed entirely by the private sector b. does not rely on worker skills and technology c. generates ready markets for each project d. requires only short-term planning e. is managed by international investors