A decrease in demand coupled with a decrease in supply results in a(n)
a. increase in equilibrium price and a decrease in equilibrium quantity
b. decrease in equilibrium price and a decrease in equilibrium quantity
c. increase in equilibrium price and a increase in equilibrium quantity
d. ambiguous effect of equilibrium price and a decrease in equilibrium quantity
e. ambiguous effect on equilibrium price and a increase in equilibrium quantity
D
You might also like to view...
If the Fed conducts an open market purchase of Treasury bonds, this will
A) encourage banks to make more loans and will increase the money supply. B) encourage banks to make more loans and will decrease the money supply. C) cause banks to reduce their loans and will increase the money supply. D) cause banks to reduce their loans and will decrease the money supply.
When a firm's MC curve shifts to the right, it implies that
A) new firms are entering the market. B) labor productivity is decreasing. C) labor productivity is increasing. D) the firm's overhead costs are decreasing.