Consider a market that is in equilibrium. If it experiences both a decrease in demand and a decrease in supply, what can be said of the new equilibrium? The equilibrium:
A. price and quantity will both fall.
B. quantity will definitely fall, while the equilibrium price cannot be predicted.
C. price will definitely fall, while the equilibrium quantity cannot be predicted.
D. price and quantity will both rise.
B. quantity will definitely fall, while the equilibrium price cannot be predicted.
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If the national incomes of our trading partners increase, then our aggregate demand ________.
A. decreases because consumption decreases B. increases because net exports increase C. decreases because net exports decrease D. increases because consumption increases
A green pasture has turned barren due to overgrazing. This happened because the pasture was ________
A) excludable and rival B) non-excludable and non-rival C) excludable but non-rival D) non-excludable but rival
Total cost is equal to the
A) sum of the total fixed cost and the total variable cost. B) sum of the average fixed cost and the average variable cost. C) difference between the average variable cost and the average fixed cost. D) product of the marginal cost multiplied by the average total cost.
A technological change that increases productivity ________ marginal product and ________ marginal cost
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases