Suppose the equilibrium price and quantity of ketchup fall. The most likely explanation for these changes is:
A. a decrease in the demand for ketchup.
B. an increase in the supply of ketchup.
C. a decrease in the supply of ketchup.
D. an increase in the demand for ketchup.
Answer: A
You might also like to view...
Hubert's Copy Services is in perfect competition. Hubert currently charges 10 cents per page, which is the going market price. He thinks that he can increase his profit by raising the price. Is it possible? Why or why not?
What will be an ideal response?
For the purposes of calculating GDP using the expenditure approach, which of the following is not included in the government purchases account?
A. The government's purchase of a computer B. The payroll of the federal government C. Government purchases of pencils D. Welfare payments to the poor
In which of the following groups are ALL of the elements associated with a fixed-rate exchange system?
a. speculative rampages; major currency revaluations; currency shortages b. inflationary pressures; currency shortages; wage controls c. speculative rampages; domestic price controls; futures market d. inflationary pressures; dirty float system; daily currency price changes
Based on the diagram, if potential output equals 8,000 and the real interest rate is 4 percent, then there is ________ gap and the Fed must ________ the real interest rate so that output will equal potential output. 
A. a recessionary; lower B. no output; not change C. a recessionary; raise D. an expansionary; raise