Assume demand is held constant and supply increases. The result is a decrease in the equilibrium price and an increase in the equilibrium quantity of the item bought and sold

a. True
b. False
Indicate whether the statement is true or false


True

Economics

You might also like to view...

The Federal Reserve

Economics

Open market operations by the Fed cause

A) the prices of bonds to change. B) changes in the required reserve ratio. C) aggregate supply to change. D) changes in the difference between the discount rate. and the federal funds rate.

Economics

With increased specialization in the economy, principal-agent problems become

a. more numerous b. less numerous c. more severe, but there are fewer of them d. less severe, but there are more of them e. easier to solve

Economics

A . What is a free rider and when do we see free riding? b. Why doesn't the market calculate the costs and benefits that accrue to free riders?

Economics