Which of the following statements is true?
A) A decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in quantity demanded.
B) If demand increases and supply decreases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater.
C) An increase in demand causes an increase in equilibrium price; the increase in price causes supply to increase.
D) If both demand and supply decrease, there must be a decrease in equilibrium price; equilibrium quantity may either increase or decrease.
A
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According to your authors, which of the following is necessary for real-world markets to clear?
A) Supply and demand curves B) The hard work of expert economists C) A well-managed national economic plan D) "Rules of the game," which allow for competitive bidding on scarce goods E) Nothing more than pure luck
The maximum amount of a good that may be imported during a specified period of time is
A) an infant industry agreement. B) an import quota. C) dumping. D) comparative advantage.