An increase in the price of a good would
a. increase the supply of the good.
b. increase the amount purchased by buyers.
c. give producers an incentive to produce more.
d. decrease both the quantity demanded of the good and the quantity supplied of the good.
c
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
The ________ curve is vertical
A) long-run aggregate demand B) short-run aggregate demand C) long-run aggregate supply D) short-run aggregate supply
Which of the following is not an explicit cost?
A) taxes B) rent C) wages D) opportunity cost of using an owner's savings
If the U.S. price level decreases, then
A. the expenditure schedule slope will flatten. B. the expenditure schedule slope will become steeper. C. shift the expenditure schedule upward. D. shift the expenditure schedule downward.