If both the supply and demand curves shift to the left, then we can conclude that there will be a(n):
a. increase in the equilibrium quantity sold.
b. decrease in the equilibrium quantity sold.
c. increase in the equilibrium price
d. decrease in the equilibrium price.
b
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Americans viewed the 12 percent mortgage interest rates of the 1980s as exorbitantly high while they considered the 7 percent mortgage interest rates of the late 1990s as reasonable. This represents a confusion of
A. actual and expected inflation. B. real versus nominal inflation. C. real versus expected mortgage payments. D. real versus nominal interest rates.
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
As a form of business, a sole proprietorship
A) cannot issue stock. B) has limited liability. C) has the most government rules and regulations affecting it. D) has more than one owner.
Holding supply constant, an increase in demand will
A) increase both the quantity and price. B) increase the equilibrium price and decrease the equilibrium quantity. C) decrease the equilibrium price and increase the equilibrium quantity. D) decrease both the quantity and price.