Select the phrase that correctly completes the following statement. "A decrease in the number of manufacturers caused a decrease in the supply of sailboats. As a result
A) the price of sailboats increased and the demand for sailboats decreased."
B) the equilibrium quantity of sailboats increased."
C) the price of sailboats increased and the quantity of sailboats demanded decreased."
D) the price of sailboats increased. The higher price caused the supply of sailboats to increase."
Answer: C
You might also like to view...
A typical IMF stabilization package involves
(a) erecting barriers against foreign investment. (b) overvaluing the exchange rate. (c) liberalization of exchange controls. (d) a reduction in interest rates. (e) all of the above.
Although some tastes do change over time, economists believe that tastes are relatively stable. If tastes were not mostly stable, then we
a. could not even draw a supply curve b. could not reasonably make the other-things-constant assumption required for demand analysis c. would not have any concerns about still drawing demand curves d. could no longer eat food e. would be basing economic models on real life instead of making impossible assumptions
Which group has a direct responsibility for providing analysis, advice, and assistance to the U.S. president on economic matters?
A. The Congressional Budget Office B. The Joint Economic Committee C. The Council of Economic Advisors D. The Federal Reserve Board
If the aggregate demand curve shifts to the left in the short run then the long-run equilibrium will be at a:
A. lower price level and lower level of output. B. lower price level and same level of output. C. higher price level and lower level of output. D. higher price level and higher level of output.