For a given downward-sloping demand curve, a decrease in supply will cause a(n):
a. increase in quantity demanded.
b. decrease in quantity demanded.
c. decrease in the equilibrium price.
d. increase in demand.
e. increase in the equilibrium quantity.
b. decrease in quantity demanded.
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If the university administration plans to cut tuition charges in the hope of attracting more students and thereby increasing tuition revenues, we know
A) they are assuming an elastic demand. B) they are assuming an inelastic demand. C) they cannot succeed because of the law of demand. D) they must be running in the red. E) they will only succeed if more students can be enrolled at no cost.
When aggregate demand is lower than expected, inventories decline and the rate of unemployment falls
a. True b. False Indicate whether the statement is true or false
Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
____________: Most probable selling price, assuming "normal" sale conditions. Value for the "typical" market participant may not be fundamental value.
Fill in the blank(s) with the appropriate word(s).