When supply is fixed, price is supply determined.
Answer the following statement true (T) or false (F)
False
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Because of unseasonably cold weather, the supply of oranges has substantially decreased. This statement indicates the
A. demand for oranges will necessarily rise. B. price of oranges will fall. C. equilibrium quantity of oranges will rise. D. supply of oranges has declined.
Refer to Figure 18-1. The French fall in love with California wines and triple their purchases of this beverage. Assuming all else remains constant, this would be represented as a movement from
A) B to C. B) C to D. C) A to B. D) A to D. E) B to A.
Suppose Dave drives more recklessly when he has car insurance than when he does not have car insurance. This is an example of the moral hazard problem associated with insurance
a. True b. False Indicate whether the statement is true or false
The economy has no international trade and no income taxes. In the short run, if government purchases were to decrease by $25 billion and the marginal propensity to consume was equal to 0.66 then real GDP would decrease by
A) $16.5 billion. B) $37.8 billion. C) $8.25 billion. D) $75 billion.