A decrease (leftward shift) in the supply for a good will tend to cause
a. an increase in the equilibrium price and quantity
b. a decrease in the equilibrium price and quantity
c. an increase in the equilibrium price and a decrease in the equilibrium quantity
d. a decrease in the equilibrium price and an increase in the equilibrium quantity
e. none of the above.
c. an increase in the equilibrium price and a decrease in the equilibrium quantity.
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What happens to the equilibrium price and quantity of automobile tires if rubber prices increase and the price of automobiles falls?
A) The equilibrium price rises, but the change in equilibrium quantity is unknown. B) The equilibrium price and quantity decrease. C) The equilibrium price falls, but the change in equilibrium quantity is unknown. D) The equilibrium price and quantity increase. E) The equilibrium quantity decreases, but the change in equilibrium price is unknown.
A monopolist who is unable to price discriminate: a. will never produce in the output range where marginal revenue is positive. b. will never produce in the output range where marginal revenue is negative. c. will never produce in the output range where demand is inelastic
d. will be characterized by both (b) and (c).