Any factor that shifts the supply curve inward and to the left and does not affect the demand curve will raise the equilibrium price and reduce the equilibrium quantity.
Answer the following statement true (T) or false (F)
True
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A monopoly is the only seller of a product
A. without a wellminusdefined demand curve. B. with many substitutes. C. with a perfectly inelastic demand. D. without a close substitute.
Which of the following would cause a firm's cost curves to shift upward?
a. a reduction in resource prices b. a decrease in taxes c. an improvement in technology d. an increase in government regulations
What will happen if speculators believe that the relative price of the U.S. dollar is going to rise?
a. They will buy more euros causing the U.S. dollar to appreciate. b. They will buy more U.S. dollars causing the U.S. dollar to appreciate in value. c. Those holding U.S. dollars will convert them to foreign currencies. d. They will buy fewer U.S. dollars causing the U.S. dollar to appreciate in value.
What happens to the LRAS curve when the level of potential output for an economy increases over time?
What will be an ideal response?