Which of the following statements is true?
A) A decrease in demand causes equilibrium price to fall; the decrease in price then results in a decrease in quantity supplied.
B) If both demand and supply increase, there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease.
C) If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater.
D) A decrease in demand causes a decrease in equilibrium price; the decrease in price causes supply to decrease.
A
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What is the conclusion that behavioral economists have made about the amount of product variety in the market place?
What will be an ideal response?
If unplanned investment is negative, firms will ________ production and output will ________
A) cut; rise B) cut; fall C) increase; rise D) increase; fall
Which of the following correctly describes the trend in the federal budget during the 1980s?
a. Federal spending declined relative to GDP, while federal revenues rose relative to GDP. b. Federal spending rose relative to GDP, while federal revenues declined relative to GDP. c. Balanced budgets were passed though cooperation between the president and Congress. d. The dollar depreciated, thereby lowering the deficit.
The property tax is the most important source of _____ government revenue.
A. federal B. state C. local