If the price of a good increased,
a. It would also increase the quantity exchanged if it was caused by an increase in demand.
b. It would also decrease the quantity exchanged if it was caused by an increase in supply.
c. We would not know how quantity would change if we didn't know whether it was due a change in demand or a change in supply.
d. All of the above would be true.
d
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If the Treasury finances an expenditure by borrowing from banks with excess reserves, the money supply will
A) remain unchanged. B) rise by an amount equal to the expenditure. C) rise by a multiple of the expenditure. D) fall by a multiple of the expenditure.
The income that people earn in resource or factor markets is called:
A. national income. B. personal income. C. disposable personal income. D. transfer payments.
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.
If monopolistic competitors are making a profit in the short run, in the long run _____________ and squeeze out profits.
Fill in the blank(s) with the appropriate word(s).