If supply decreases and demand increases
A) the market clearing price definitely rises, and the equilibrium quantity falls.
B) the market clearing price definitely rises, and the equilibrium quantity is indeterminate.
C) the market clearing price definitely falls, and the effect on the equilibrium quantity is indeterminate.
D) the effect on the market clearing price is indeterminate, and the equilibrium quantity definitely falls.
Answer: B
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Marginal revenue is equal to
A) total revenue divided by price. B) the change in total revenue divided by total output. C) the change in total revenue divided by the change in quantity sold. D) price divided by quantity sold.
In the quantity equation, V represents the:
A. total number of transactions during some period of time. B. price of a typical transaction. C. rate at which each unit of money circulates in the economy. D. quantity of money.