Which of the following would cause a decrease in the equilibrium price and decrease in the equilibrium quantity of papayas?
A) a decrease in supply and a decrease in demand
B) an increase in supply and an increase in demand greater than the increase in supply
C) a decrease in supply and an increase in demand
D) a decrease in demand
D
You might also like to view...
Employing a fixed-weight index like the Consumer Price Index to adjust a person's salary in response to inflation will overcompensate this person because doing so will allow this person to
A) buy the same bundle of goods as he did before the inflation. B) achieve a higher level of utility than he did before the inflation. C) achieve the same level of utility as before the inflation. D) buy more of all goods.
Refer to the above figure. If real Gross Domestic Product? (GDP) is? $6 trillion, then unplanned business inventories will
A. fall.
B. rise.
C. be zero.
D. be equal to planned inventories.
All else constant, an increase in the demand for bonds
A) increases the equilibrium quantity and the equilibrium price of bonds. B) increases the equilibrium quantity and decreases the equilibrium price of bonds. C) decreases the equilibrium quantity and increases the equilibrium price of bonds. D) decreases the equilibrium quantity and the equilibrium price of bonds.
Satellite TV is a close substitute for cable TV. In the 1990's, small satellite TV units were developed that made it less costly for individual consumers to subscribe to satellite TV service. This caused the price elasticity of demand for cable TV service to:
A. become more elastic. B. shift to the left. C. become more inelastic. D. become less elastic.