If demand for a good decreases and supply remains constant equilibrium price:
a. Will increase, and equilibrium quantity will decrease
b. And quantity will both increase
c. And quantity will both decrease
d. Will decrease, and equilibrium quantity will increase
c. And quantity will both decrease
You might also like to view...
All of the following are true regarding flexible exchange rates except
A. Speculators typically push exchange rates away from the long-term equilibrium. B. Exchange rate movements alter relative prices and may disrupt import and export flows. C. The quantity of foreign exchange demanded equals the quantity supplied. D. Some people are hurt while others are helped by exchange rate movements.
Slower real wage growth in the U.S. since the 1970s accompanied by rapid job growth, can be explained by:
A. skill-biased technological change. B. a productivity slowdown accompanied by a decrease in the labor supply. C. globalization. D. a productivity slowdown accompanied by an increase in the labor supply.