If demand decreases and supply increases in a market that is initially in equilibrium, then _____
a. the equilibrium price will always increase.
b. the equilibrium quantity will always decrease.
c. the equilibrium price will remain unchanged.
d. the equilibrium quantity will remain unchanged.
e. the equilibrium price will always decrease.
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
If Microsoft is a monopoly and currently charges prices where its demand is elastic, then Microsoft's marginal revenue is
A) negative. B) positive. C) zero. D) minimized. E) undefined.
The above table shows Sue's total utility from golf and tennis. If the price of each hour of golf is twice the price of each hour of tennis, and Sue plays four hours of tennis, then Sue plays
A) one hour of golf. B) two hours of golf. C) three hours of golf. D) four hours of golf.
If exports are being excluded unfairly from a market, the World Trade Organization (WTO) may authorize
A. Quotas. B. Other nontariff barriers. C. Retaliatory comparative advantages. D. Retaliatory tariffs.