Suppose demand decreases, but there is no change in supply. As the market reaches its new equilibrium:
A. excess supply will lead the price to fall.
B. excess demand will lead the price to fall.
C. excess supply will lead the price to rise.
D. excess demand will lead the price to rise.
Answer: A
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Answer the following statement true (T) or false (F)
Of the following high-income countries, which has the highest life expectancy at birth?
A) Canada B) Japan C) the United Kingdom D) the United States
Which of the following activities is NOT a primary concern of investment banks?
A) taking in deposits and making loans B) providing advice and financing for mergers and acquisitions C) underwriting new security issues D) providing advice on new security issues
What is true about threats in the game in Scenario 13.15?
A) Simple can change the equilibrium by means of a credible threat; Boring cannot. B) Boring can change the equilibrium by means of a credible threat; Simple cannot. C) Boring can change the equilibrium by means of a credible threat only if it can move before Simple. D) Simple can change the equilibrium by means of a credible threat only if it can move before Boring. E) Neither firm has a credible threat with which to change this equilibrium.