Following adjustments to a new equilibrium in a market, the equilibrium quantity remains unchanged, but the market clearing price is now lower. Which of the following could definitely have caused this outcome?

A) Demand and supply both increased.
B) Demand and supply both decreased.
C) Demand increased, and supply decreased.
D) Demand decreased, and supply increased.


Answer: D

Economics

You might also like to view...

When interest rates fall, people will be willing to hold more money.

a. true b. false

Economics

In the United States, the distribution of wealth is more unequal than the distribution of income.

Answer the following statement true (T) or false (F)

Economics

The ceteris paribus assumption is a behavioral assumption.

a. True b. False

Economics

One aspect of bank accounting is that many liabilities of banks are

A. assets of other persons and businesses in the economy. B. also liabilities of other persons and businesses in the economy. C. not matched by liabilities of most other banks. D. not actually owed to any other person or business in the economy.

Economics