An increase in supply causes
A. price to decrease.
B. price to increase.
C. quantity supplied to decrease.
D. supply and price to increase.
Answer: A
You might also like to view...
The figure above shows the costs associated with producing paper. When paper is produced, there is some pollution runoff into a lake
According to the Coase Theorem, if the transactions costs are low and there are only a few people involved, the output will equal ________ tons of paper if ________ own the lake. A) 3; only the lakeside residents B) 3; either the firms or lakeside residents C) 4; the firms D) 4; either the firms or lakeside residents
A Lorenz curve measures the ________ on the horizontal axis
A) cumulative percentage of family income B) cumulative percentage of family wealth C) cumulative percentage of families D) demand of families on welfare
All of the following would cause exports to decline, except:
a. a depreciation of the domestic currency. b. a decline in foreign income. c. stricter government regulations on international trade. d. a decline in foreign preferences for domestic goods. e. foreign import quotas on domestic products.
When the U.S. government runs a deficit, the resulting higher interest rate:
A. increases foreigners' willingness to invest in the U.S., which "crowds out" domestic investment. B. increases firms' desire to invest, but "crowds out" domestic investment. C. reduces firms' desire to invest, and "crowds out" domestic investment. D. reduces foreigners' willingness to invest in the U.S., but still "crowds out" domestic investment.