If supply decreases and demand increases, then the equilibrium
a. price will decrease and quantity will increase
b. price will increase and quantity will decrease
c. price will increase and quantity could increase, decrease, or remain the same
d. price could increase, decrease, or remain the same and quantity will increase
e. price will increase, decrease, or remain the same and quantity will decrease
C
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At a competitive market equilibrium, if there are no taxes, subsidies, price regulations, quantity regulations, or externalities, i. consumer surplus is minimized. ii. marginal cost equals marginal benefit. iii. resources are efficiently used
iv. producer surplus is minimized. A) ii and iii B) i and ii C) i and iv D) i, ii, iii, and iv E) ii only
For which of the following is the law of one price least likely to hold?
A) Haircuts B) Gold C) US Treasury Bonds D) Petroleum