Which of the following statements is true?
A) If both demand and supply increase, there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease.
B) A decrease in demand causes equilibrium price to fall; the decrease in price then results in a decrease in quantity supplied.
C) A decrease in demand causes a decrease in equilibrium price; the decrease in price causes supply to decrease.
D) If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater.
B
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Gross public debt is
A) the total value of budget deficits plus budget surpluses over the past five years. B) an excess of government spending over government revenues during a given time period. C) a situation in which the government's spending is exactly equal to the total taxes and other revenues it collects during a given time period. D) all federal government debt irrespective of who owns it.
A financial account surplus necessarily implies
A) a balance of payments surplus. B) a current account surplus. C) a current account deficit. D) an increase in the nation's official reserve assets.