Holding demand constant, a reduction in supply leads to
A) lower prices and higher quantity demanded.
B) lower prices and lower quantity demanded.
C) higher prices and higher quantity demanded.
D) higher prices and lower quantity demanded.
D
You might also like to view...
As more of a good is consumed, the marginal benefit of the good
A) increases. B) decreases. C) remains constant. D) is unpredictable. E) first decreases and then increases.
The loss to society resulting from a tax includes the
A) deadweight loss. B) consumer surplus paid to the government in the form of tax revenue. C) producer surplus paid to the government in the form of tax revenue. D) deadweight loss plus the consumer surplus and producer surplus paid to the government as tax revenue. E) deadweight loss minus the tax revenue collected by the government.
A movement upward along an upward sloping Engel curve corresponds to
A) upward sloping indifference curves. B) crossing indifference curves. C) a rotation in the budget constraint. D) a parallel shift in the budget constraint.
In which of the following situations should a firm pay efficiency wages?
a. A hiring manager can easily judge the quality of applicants, and after workers have worked for the firm a while, they tend not to look for other jobs. b. A hiring manager can easily judge the quality of applicants, and after workers have worked for the firm a while, they tend to look for other jobs. c. A hiring manager cannot easily judge the quality of applicants, and after workers have worked for the firm a while, they tend to look for other jobs. d. A hiring manager cannot easily judge the quality of applicants, and after workers have worked for the firm a while, they tend not to look for other jobs.