Ceteris paribus, if the market supply of a product increases, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____
a. increase; decrease
b. decrease; increase
c. increase; increase
d. decrease; indeterminate
a
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If the price elasticity of demand for a good equals one, then the demand for that good is:
A. inelastic. B. elastic. C. unit elastic. D. perfectly elastic.
Refer to Table 9-12. If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded, how many belts will Estonia consume?
A) 50 B) 70 C) 90 D) 120
Other things constant, a decrease in nominal GDP will generally
a. increase the demand for money. b. decrease the demand for money. c. increase the nominal interest rate. d. decrease the money supply.
When the money market is drawn with the value of money on the vertical axis, a decrease in the price level causes a
a. movement to the right along the money demand curve. b. movement to the left along the money demand curve. c. shift to the right of the money supply curve. d. shift to the left of the money supply curve.