All other factors being constant, a reduction in price tends to cause which of the following?
A. a reduction in quantity supplied and an increase in quantity demanded
B. an increase in quantity supplied and a reduction in quantity demanded
C. an increase in supply and an increase in demand
D. a reduction in supply and an increase in demand
Answer: A
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The increase in the currency ratio during World War II was due to
A) bank panics. B) a drop in the rate of interest paid on checking deposits. C) the spread of ATMs. D) high taxes and illegal activities.
In the 1980s, expansionary fiscal policy is believed to have crowded out
A) domestic investment as interest rates rose. B) exports and imports as interest rates rose. C) exports but not domestic investment as interest rates rose. D) domestic investment as interest rates fell.
The government borrows by selling bonds. The DEBT
What will be an ideal response?
Over time, housing shortages caused by rent control
a. increase, because the demand for and supply of housing are less elastic in the long run.
b. increase, because the demand for and supply of housing are more elastic in the long run.
c. decrease, because the demand for and supply of housing are less elastic in the long run.
d. decrease, because the demand for and supply of housing are more elastic in the long run.