Assume that supply decreases slightly and demand decreases greatly. Which of the following will happen?
A) Equilibrium price will fall and equilibrium quantity will rise.
B) Equilibrium price will rise and equilibrium quantity will fall.
C) Equilibrium price will rise and equilibrium quantity will rise.
D) Equilibrium price will fall and equilibrium quantity will fall.
E) Neither equilibrium price nor equilibrium quantity will change.
Correct Answer:
Verified
Q210: Which of the following is a function
Q211: Under competitive conditions, market prices
A) generally convey
Q212: "He [the producer] intends only his gain,
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Q214: If there is a decrease in both
Q216: Suppose both the equilibrium price and quantity
Q217: According to Adam Smith's invisible hand principle,
Q218: Adam Smith's invisible hand principle stresses
A) that
Q219: Which of the following is a major
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A) conveyors of information.
B) determined
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