With a given supply curve, a decrease in demand leads to
A. a decrease in equilibrium price and a decrease in equilibrium quantity.
B. an increase in equilibrium price and a decrease in equilibrium quantity.
C. no change in price and a decrease in equilibrium quantity.
D. a decrease in equilibrium price and an increase in equilibrium quantity.
Answer: A
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The figure above shows the demand curve for pizza
a. What is the marginal benefit of the 20th pizza? b. What is the maximum price the consumer is willing to pay for the 20th pizza? c. If the price of a pizza is $6, what is the consumer surplus of the 20th pizza? d. If the price of a pizza is $10, what is the consumer surplus on all the pizzas consumed? e. If the price of a pizza is $6, what is the consumer surplus on all the pizzas consumed?
If aggregate expenditure is less than GDP, then inventories rise and GDP falls
Indicate whether the statement is true or false
In determining the exchange rate between U.S. dollars and Swiss francs, all of the following are assumed constant along the supply curve for francs except one. Which is not assumed constant?
a. U.S. interest rates b. Swiss income c. expected rates of inflation in the United States d. expected rates of inflation in Switzerland e. the price of the Swiss franc
Unions face a trade-off between higher wages and
A. equipment. B. more available positions. C. fewer available positions. D. none of these.