Exhibit 4-6 Demand and supply curves
If the market supply increases and, simultaneously, market demand decreases, the new equilibrium will show:
A. market price will decrease, and market quantity exchanged could increase, decrease, or remain unchanged.
B. market price will increase, and market quantity exchanged will decrease.
C. market price will increase, and the quantity exchanged could increase, decrease, or remain the same.
D. market price could increase, decrease, or remain the same, and quantity exchanged will increase.
Answer: A
You might also like to view...
All modern economies depend on
A. the exploitation of workers. B. government ownership of the means of production. C. free-enterprise. D. specialization.
Explain three factors that would cause the dollar to appreciate.
What will be an ideal response?
The automatic mechanism can best be described as:
A) the process of the economy adjusting back to potential GDP without any action taken by the government B) the result of monetary policy implemented by the Fed restoring full employment C) how fiscal policy is used to return the economy to its potential D) using rule-based policies to stabilize the economy
Which of the following is a justification for taxes?
a. the ability-to-pay principle b. the progressive tax principle c. the proportional tax principle d. the regressive tax principle e. the desire of the government to spend more funds