A decrease in the demand for eggs due to changes in consumer tastes, accompanied by a decrease in the supply of eggs as a result of an outbreak of Avian flu, will result in
A) a decrease in the equilibrium price of eggs and no change in the equilibrium quantity.
B) a decrease in the equilibrium price of eggs; the equilibrium quantity may increase or decrease.
C) a decrease in the equilibrium quantity of eggs; the equilibrium price may increase or decrease.
D) a decrease in the equilibrium quantity of eggs and no change in the equilibrium price.
C
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The price elasticity of demand can range between
A) zero and one. B) negative infinity and infinity. C) zero and infinity. D) negative one and one.
Beginning from a position of long-run equilibrium at the full-employment level of real GDP, the economy's short-run response to a decrease in the aggregate demand curve would be a: a. movement upward along the short-run aggregate supply curve
b. movement upward along the long-run aggregate supply curve. c. downward shift in the short-run aggregate supply curve. d. movement downward along the short-run aggregate supply curve.