Which of the following statements is true of a market?
a. An increase in demand, with no change in supply, will increase the equilibrium price and quantity.
b. An increase in supply, with no change in demand, will decrease the equilibrium price and the equilibrium quantity.
c. A decrease in supply, with no change in demand, will decrease the equilibrium price and increase the equilibrium quantity.
d. All of these.
a
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If aggregate demand is stable and there is economic growth, the economy will experience
A) secular depreciation. B) secular decline. C) secular deflation. D) secular degeneration.
When a price rise of an asset can be justified by fundamental concepts and past experiences, then such a price rise does not constitute a classic bubble
a. True b. False Indicate whether the statement is true or false
If the cross elasticity of demand coefficient for potato chips and pretzels equals 1.5: a. potato chips and pretzels must both be inferior goods. b. potato chips and pretzels must both be normal goods. c. potato chips and pretzels must be substitutes
d. potato chips and pretzels must be complements.
If prices have risen 220 percent since the base year, the current level of the CPI is
A. 20. B. 120. C. 220. D. 320.