If supply and demand both decrease, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.
A. higher; higher
B. lower; lower
C. uncertain; lower
D. lower; uncertain
Answer: C
You might also like to view...
In the table above, if the wage rate is $12.00 per hour, the profit-maximizing number of workers is
A) 2. B) 3. C) 4. D) 5.
Which of the following is false? a. The price elasticity of demand measures the responsiveness of quantity demanded to a change in price
b. The price elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in price. c. If demand is elastic, it means the quantity demanded changes by a relatively larger amount than the price change. d. All of the above are true.
Suppose the market equilibrium price of corn is $5 per bushel, and the government sets a price ceiling of $4 per bushel. What is the most likely result of this action?
a. There will be a shortage of corn. b. There will be a surplus of corn. c. There will be a decrease in the quantity of corn demanded as the result of the price ceiling. d. There will be an increase in the quantity of corn supplied as the result of the price ceiling.
Average total cost and average variable cost are minimized at the same level of output.
Answer the following statement true (T) or false (F)