Which of the following statements is true?
A) If both demand and supply increase, there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease.
B) A decrease in demand causes equilibrium price to fall; the decrease in price then results in a decrease in quantity supplied.
C) A decrease in demand causes a decrease in equilibrium price; the decrease in price causes supply to decrease.
D) If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater.
B
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When the United States imposes a tariff on an imported good, the
A) quantity of the good produced in the United States decreases. B) amount imported increases. C) price of the good in the United States falls. D) outcome becomes more efficient. E) quantity of the good purchased in the United States decreases.
Refer to Figure 8.1. If each player cooperated with one another, each player would find themselves ________ better off than they are by playing their dominant strategies
A) $0 B) $280 C) $490 D) $560
An increase in financial frictions results in ________
A) an increase in output and inflation B) a rise in the interest rate set by monetary policy C) a decline in the real interest rates faced by households and firms D) a decline in the interest rate set by monetary policy
Refer to Scenario 12.3. What will be the price of this new drink in the long run if the industry is a Stackelberg duopoly?
A) $3 B) $9 C) $12 D) $13.50 E) none of the above