If supply increases and demand decreases
A) the market clearing price definitely rises, and the equilibrium quantity definitely falls.
B) the market clearing price definitely rises, and the effect on the equilibrium quantity is indeterminate.
C) the market clearing price definitely falls, and the effect on the equilibrium quantity is indeterminate.
D) the effect on the market clearing price is indeterminate, and the equilibrium quantity definitely falls.
C
You might also like to view...
Refer to the above table. What does total product equal when 4 units of labor are used?
A) 1328 B) 332 C) 320 D) 960.
When airplanes take off and land at Logan airport, residents of East Boston complain about the noise. The same planes make the same noise during the trip to Boston from Paris, but there are no ____ for most of the trip because ____
a. jet sounds; noise doesn't travel at high altitudes b. third parties; there are no externalities c. externalities; there are no third parties d. complaints; airplanes are insulated e. free riders; passengers must pay to board the plane
The main source of earning profits for banks is:
a. government securities. b. saving accounts. c. reserves. d. loans. e. checking account fees.
Which of the following is a major goal of short-run macroeconomic policy?
A. Shift the production possibilities curve outward. B. Shift the aggregate supply curve to the left. C. Move toward the production possibilities curve and full employment. D. None of the choices are correct.