Ceteris paribus, an increase in the supply of a good causes which of the following?
a. lowers the equilibrium price, and reduces the quantity bought and sold
b. raises the equilibrium price, and raises the quantity bought and sold
c. raises the equilibrium price, and increases the quantity bought and sold
d. lowers the equilibrium price, and increases the quantity bought and sold
e. equilibrium price and equilibrium quantity change are indeterminate
D
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If most workers are risk adverse why do we still see many workers agreeing to contracts where their compensation is variable like commissions for magazine salesmen or car salesmen?
What will be an ideal response?
An externality refers to economic events outside a market
Indicate whether the statement is true or false
Which is the best example of the law of supply?
a. A milling company builds a new factory to process flour to export. b. A catering company buys a new dishwasher to make their work easier. c. A food producer increases the number of acres of wheat he grows to supply a milling company. d. A sandwich shop increases the number of sandwiches they supply every day when the price is increased.
The process of packaging a variety of loans together and slicing them up into new financial instruments is called:
A. diversifying. B. securitization. C. defaulting. D. liquidating.