If equilibrium price falls and the equilibrium quantity of the good purchased decreases, what has happened to either the supply curve or to the demand curve?
A) Supply increased.
B) Demand decreased.
C) Demand increased.
D) Supply decreased.
B
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What is the relationship between the balance of trade and the current account balance?
What will be an ideal response?
In a two-period model, holding everything else constant, an increase in future taxes
A) unambiguously increases the current account surplus. B) unambiguously decreases the current account surplus. C) has an uncertain effect on the current account surplus. D) has no effect on the current account surplus, as long as Ricardian equivalence holds.
A firm's total revenue
a. is the profit it earns by producing and selling a particular quantity of output b. varies as output varies along the demand curve the firm faces c. is constant at all points along a fixed demand curve d. is determined by subtracting total profit from total cost e. always decreases as its output increases, because costs rise
Budget surplus is the amount by which the government’s receipts exceed expenditures during a specified period of time, usually a year.
Answer the following statement true (T) or false (F)