An increase in demand and a decrease in supply will lead to an
A) unambiguous increases in both price and quantity.
B) unambiguous decreases in both price and quantity.
C) an unambiguous increase in quantity, but the effect on price is indeterminate.
D) an unambiguous increase in price, but the effect on quantity is indeterminate.
D
You might also like to view...
A major function of incentive payments, guarantees, and signals is to enable markets to overcome the problem of
A) irrational forecasting. B) efficient forecasting. C) private information. D) public information.
If the amount you owe on your house is greater than the price of the house, you have
A) negative equity in your house. B) no value to your house. C) a reverse mortgage on your house. D) a mortgage rate that is too high.
A subsidy:
A. has a larger impact on a market than a tax of the same amount. B. has a smaller impact on a market than a tax of the same amount. C. is the reverse of a tax. D. has the same impact on a market as a tax.
If a particular production process is subject to diminishing marginal returns to labor at every level of output, then at every level of output
A) AC is upward sloping. B) MC exceeds AVC. C) AFC is constant. D) All of the above.