A decrease in the price of a good will, all other things unchanged, result in:
A) an increase in demand.
B) an increase in supply.
C) an increase in the quantity demanded.
D) more being supplied.
Ans: C) an increase in the quantity demanded.
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When the Fed sells government securities to a bank, how are the Fed's assets affected?
A) The amount of the Fed's government securities decreases. B) The amount of the Fed's government securities increases. C) The amount of reserves held at the Fed increases. D) The amount of reserves held at the Fed decreases.
A decrease in the level of capital inside a nation would cause the:
A. long-run aggregate supply curve to shift to the right. B. long-run aggregate supply curve to shift to the left. C. short-run aggregate supply curve to shift to the right. D. aggregate demand curve to shift to the right.
The exchange-rate effect helps explain what feature in the aggregate demand and aggregate supply model?
Between 1980 and 2000, income per person in India
A) doubled. B) tripled. C) quadrupled. D) decreased by 25 percent.