When floods wiped out the banana crop in Central America, the equili-brium price of bananas ________ and the equilibrium quantity of bananas ________
A. rose; increased
B. rose; decreased
C. fell; increased
D. fell; decreased
B Figure 4.12(b) on page 102 illustrates this case of a decrease in supply.
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Suppose the market clearing price for apples rises from $2.00 to $3.00 per pound, and the overall market clearing output increases from 1 million to 2 million pounds. How can we explain the increase in price and increase in market output?
A) Supply increased and demand remained unchanged. B) Supply decreased and demand decreased. C) Demand increased and supply remained unchanged. D) None of the above.
Examples of thrift institutions include
A) savings deposits and checking deposits. B) commercial banks, savings and loan associations, and insurance companies. C) savings and loan associations, savings banks, and credit unions. D) money market mutual funds, commercial banks, and credit unions.