Other things being equal, a higher price induces
A) buyers to reduce the amount they want to buy and sellers to increase the amount they are willing to sell.
B) buyers to increase the amount they want to buy and sellers to reduce the amount they are willing to sell.
C) buyers to reduce the amount they want to buy and sellers to reduce the amount they are willing to sell.
D) buyers to increase the amount they want to buy and sellers to increase the amount they are willing to sell.
A
You might also like to view...
At least one economist has suggested that even large developing-country cities are economically too small. What argument would support this contention? How would you argue against it?
What will be an ideal response?
Assume there is a price ceiling imposed on a good which is below the equilibrium price. Which of the following changes would reduce the size of the surplus? a. An increase in demand
b. A decrease in demand. c. An increase in supply. d. None of the above; there is no surplus.