Consider a market that is in equilibrium. If it experiences a decrease in supply, what will happen? The supply curve will shift to the:
A. left and the equilibrium price and quantity will rise.
B. left and the equilibrium price will increase and the equilibrium quantity will decrease.
C. left and the equilibrium price and quantity will fall.
D. right and the equilibrium price and quantity will fall.
B. left and the equilibrium price will increase and the equilibrium quantity will decrease.
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In Chapter 11, the production function variable A has been given several different names. Which of the following is NOT one of them?
A) autonomous growth factor B) infrastructure C) multifactor productivity D) residual
A necessary condition for a separating equilibrium when workers can use education as a signal of their ability is
A) the high-ability wage is larger than the sum of the degree cost plus the low-ability wage. B) the cost of a degree is larger than the low-skill wage. C) the high-ability wage is smaller than the low-ability wage. D) the high-skill wage is equal to the cost of a degree.
Which of the following disciplines is not part of the social sciences?
a. mathematics b. sociology c. anthropology d. psychology e. economics
In a long-run equilibrium, the marginal firm has
a. price equal to minimum marginal cost. b. total revenue equal to total cost. c. accounting profit equal to zero. d. All of the above are correct.