The price of a resource declines when:
a. both the demand for and the supply of the resource declines in the same proportion.
b. demand remaining constant, supply of the resource declines.
c. supply remaining constant, the demand for the resource declines.
d. both the demand for and the supply of the resource increases in the same proportion.
e. both the demand for and the supply of the resource declines, but supply falls by a greater proportion than demand.
c
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John has to choose between a camping holiday and a holiday in Las Vegas. If he evaluates the total net benefit of both alternatives before coming to a decision, he is using the technique of:
A) ordinal analysis. B) optimization in levels. C) optimization in differences. D) marginal analysis.
A nation running a persistent balance of payments surplus while part of a fixed exchange rate system would be required to __________ international reserves in an effort to prevent its currency from __________
A) amass; appreciating B) amass; depreciating C) pay out; appreciating D) pay out; depreciating