Suppose supply decreases and demand increases. What effect will this have on the quantity?
A. It will rise.
B. It will remain the same.
C. It may rise or fall.
D. It will fall.
Answer: C
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Suppose real GDP is $12.6 trillion and potential GDP is $12.4 trillion. To move the economy back to potential GDP, Congress should
A) lower government purchases by an amount less than $200 billion. B) lower government purchases by $200 billion. C) raise taxes by $200 billion. D) lower taxes by $200 billion. E) raise taxes by an amount more than $200 billion.
If you have flipped a fair coin and tails has come up 49 times in a row, what are the odds that the next flip will be a head?
A) 1/50 B) 1/25 C) 1/2 D) 1 (100%)
For most firms, the biggest cost of doing business is wages.
Answer the following statement true (T) or false (F)
Refer to the graph shown. Which of the following curves demonstrates a perfectly inelastic demand curve?
A. A B. B C. C D. None of the curves