Say the supply of a product falls while the demand stays the same. This causes the free market ________

a. price to increase and equilibrium quantity to increase
b. price to increase and equilibrium quantity to decrease
c. price to decrease and equilibrium quantity to increase
d. price to decrease and equilibrium quantity to decrease


Answer: b. price to increase and equilibrium quantity to decrease

Economics

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A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A

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What do economists mean when they say that a firm's plant is fixed?

What will be an ideal response?

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The substitution effect of an increase in the price of Raisin Bran refers to

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The production possibilities curve demonstrate which of the following concepts?

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Economics