Assume the demand for sugar decreases and the supply of sugar increases. Which of the following outcomes is certain to occur?
A. The equilibrium quantity of sugar will rise.
B. The equilibrium price of sugar will fall.
C. The equilibrium quantity of sugar will fall.
D. The equilibrium price of sugar will rise.
Answer: B
You might also like to view...
In the Keynesian model, it is assumed that, when demand for a firm's product changes, the firm:
A. changes prices and production levels to meet demand. B. changes prices to meet the demand. C. changes production levels to meet the demand. D. changes prices, but holds production levels constant, to meet the demand.
Which of the following changes would clearly increase the supply of money in the banking system?
a. an increase in the percentage of money people want to hold as currency and a decrease in the fraction of deposits banks want to hold as excess reserves b. an increase in the percentage of money people want to hold as currency and an increase in the fraction of deposits banks want to hold as excess reserves c. a decrease in the percentage of money people want to hold as currency and a decrease in the fraction of deposits banks want to hold as excess reserves d. a decrease in the percentage of money people want to hold as currency and an increase in the fraction of deposits banks want to hold as excess reserves
Even with the big three textbook publishers (McGraw-Hill, Pearson, and Cengage) having a large market share, the textbook industry is still considered a ____________ model because of the high level of competition that exists.
A. cartel B. cut throat competitor C. open collusion D. price leadership
Individuals who specialize in activities that lower transaction costs are
A) consumers. B) producers. C) bureaucrats. D) middlemen.