If the demand for a product increases and the supply of the same product decreases, the equilibrium price will increase
Indicate whether the statement is true or false
TRUE
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Which of the following would likely cause aggregate demand to shift to the left?
A. Decreased income taxes B. Increased government spending C. Decreased consumer confidence D. increase in investors' confidence.
If there is a shortage at a given price, then
A. That price is less than the equilibrium price. B. That price is greater than the equilibrium price. C. That price is the equilibrium price. D. There is no equilibrium price in the market.
The price elasticity of demand is calculated as the absolute value of the
A) percentage change in quantity demanded divided by the percentage change in price. B) percentage change in price divided by the percentage change in quantity demanded. C) change in quantity demanded divided by the change in price. D) change in price divided by the change in quantity demanded.
What is the maximum amount an investor should be willing to pay for a two-year $200 annuity, if the best alternative investment earns 20 percent per annum?
a. $305.56 b. $166.67 c. $138.89 d. $268.79