A decrease in demand and a decrease in supply will lead to
A) unambiguous increases in both price and quantity.
B) unambiguous decreases in both price quantity.
C) an unambiguous decrease in price, but the effect on quantity is indeterminate.
D) an unambiguous decrease in quantity, but the effect on price is indeterminate.
Answer: D
You might also like to view...
In the short run, an increase in net exports causes
A. an increase in real GDP and the price level. B. an increase in real GDP and a decrease in the price level. C. adecrease in real GDP and an increase in the price level. D. a decrease in real GDP and the price level.
A major difference between monopolistic competition and perfect competition is
A) that products are not standardized in monopolistic competition unlike in perfect competition. B) the barriers to entry in the two markets. C) the degree by which the market demand curves slope downwards. D) the number of sellers in the markets.