A decrease in demand with the supply held constant leads to:
a. an increased equilibrium price and an increased equilibrium quantity.
b. a decreased equilibrium price and a decreased equilibrium quantity.
c. a decreased equilibrium price and an increased equilibrium quantity.
d. an increased equilibrium price and a decreased equilibrium quantity.
b
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The prediction of permanent, growing shortages of fresh drinking water by the year 2050 assumes
A) water prices will increase. B) water prices will decrease. C) water prices will not adjust appropriately to coordinate the market. D) nobody will be able to collect water from rain and snowstorms.
In the nation of Transporta, the income elasticity of demand for used cars is -2.66. So when incomes in this nation increase by 10 percent
A) the quantity of used cars demanded will increase by 26.6 percent. B) used cars will be normal goods. C) the quantity of used cars demanded will decrease by 26.6 percent. D) the demand curve for used cars will shift rightward.