Refer to the above figure. Suppose that the supply curve shifts from SA to SB while the demand curve remains at DA. Which of the following is TRUE?
A) Only quantity supplied has increased.
B) Only quantity demanded has decreased.
C) Supply has increased.
D) Supply has decreased.
Ans: C) Supply has increased.
You might also like to view...
Refer to the above figure. Perfect income equality is shown by
A. curve A. B. the horizontal axis. C. the vertical axis. D. curve D.
Vault cash is equal to $2 million, deposits by depository institutions at the central bank are $1 million, the monetary base is $15 million, and bank deposits are $30 million. Bank reserves are equal to
A. $5 million. B. $2 million. C. $3 million. D. $10 million.
In perfect competition, each additional unit of output that a firm sells will yield a marginal revenue that is
A. less than price. B. equal to price. C. equal to average total cost. D. greater than price.
Based on the table "Real and Nominal GDP," if year one is the base year, then the GDP deflator for year three is ________
A) 165 B) 139.8 C) 85.8 D) 133.6 E) 114.6