Suppose demand decreases and supply decreases. Which of the following will happen?
a. equilibrium price will increase
b. equilibrium price will decrease
c. equilibrium quantity will increase
d. equilibrium quantity will decrease
e. neither the equilibrium price nor the quantity will change
D
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Holding constant risk and the real returns available abroad, lower domestic real interest rates ________ capital inflows, ________ capital outflows, and ________ net capital inflows.
A. decrease; increase; decrease B. increase; increase; decrease C. increase; decrease; increase D. increase; increase; increase
The opportunity cost of housing =
What will be an ideal response?
A consumer is likely to ________ his opportunity costs when ________.
A. overvalue; they are right in front of him B. undervalue; they are obvious C. undervalue; they are not right in front of him D. overvalue; they are not obvious
To conduct a partial equilibrium analysis of a change in consumer preferences toward coffee and away from tea, you must consider
A. changes in the amount of resources allocated to the production of coffee. B. changes in the price of resources allocated to the production of coffee. C. changes in the equilibrium price and quantity of coffee. D. all of the above