Consider a market that is initially in equilibrium. If we observe that both price and quantity increased, which of the following could have occurred?
a. both supply and demand decreased but the dominant change was the decrease in demand
b. supply decreased
c. demand decreased
d. supply decreased and demand increased but the dominant change was the increasein demand
e. supply increased and demand decreased
D
You might also like to view...
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
Your real wealth is measured as the
A) amount of assets you have in dollar terms. B) amount of money you have. C) amount of goods and services your wealth will buy. D) amount of goods you have divided by the price level.
In the figure above, if an excise tax is imposed that generates an efficient allocation of resources, then the amount of output will be
A) zero. B) 50 units. C) 150 units. D) 250 units.
Refer to Table 8-18. What is nominal GDP in 2016 when 2011 is the base year?
A) $28,885 B) $11,790 C) $11,200 D) $10,275