Assume declining profits in the market for Internet service force several firms in the area to drop out of the market. All else constant, this would cause the:
A) equilibrium price and quantity to decrease.
B) equilibrium price and quantity to increase.
C) equilibrium price to increase and equilibrium quantity to decrease.
D) equilibrium price to decrease and equilibrium quantity to increase.
C
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Other things held constant, when the general price level changes:
a. we move along the aggregate demand curve. b. we shift the aggregate demand curve to the right. c. we shift the aggregate demand curve to the left. d. we shift the aggregate supply curve to the right. e. we shift the aggregate demand curve to the left.
Which of the following is not a responsibility of the Federal Reserve?
a. Controlling the money supply b. Printing paper currency c. Supervising banks d. Acting as a bank for banks (e.g., lender of last resort) e. Clearing checks