Related to the Economics in Practice on p. 79: If the supply of generators decreased and the equilibrium price of generators decreases, the demand for generators ________ and total revenue from the sale of generators ________.
A) decreased; will decrease
B) increased; may increase, decrease, or stay the same
C) may have increased, decreased, or stayed the same; will decrease
D) may have increased; decreased, or stayed the same; may increase, decrease, or stay the same

Question

Quizplus · Accepted Answer

If the supply of generators decreases, the equilibrium price will increase, not decrease. This will lead to a decrease in demand for generators and a decrease in total revenue from the sale of generators.

Related to the Economics in Practice on P