If the equilibrium price of a good decreases and the equilibrium quantity of the good decreases, we can conclude that
举一反三
- Good A and good B are substitutes in production. The demand for good A decreases, which lowers the price of good A. The decrease in the price of good A ( ) A: decreases the supply of good B: increases the supply of good C: decreases the demand for good D: increases the demand for good
- When the price of a good is higher than the equilibrium price,
- An increase in market supply and an increase in market demand will result in A: A decrease in equilibrium price and an increase in equilibrium quantity B: A decrease in equilibrium price - the change in equilibrium quantity is indeterminate C: An increase in equilibrium quantity and the change in price is unclear D: all of above
- If the U.S. Surgeon General announced that increased grapefruit juice consumption could help prevent heart attacks, what would happen to the equilibrium price and quantity of grapefruit juice? A: Price and quantity both increase. B: Price and quantity both decrease. C: Price increases but quantity decreases. D: Price decreases but quantity increases.
- If the government establishes a legal price floor for a good, the result will be a(n) A: shortage of the good, but only if the floor is equal to the equilibrium price. B: surplus of the good, but only if the floor is above the equilibrium price. C: surplus of the good, but only if the floor is below the equilibrium price. D: shortage of the good, but only if the floor is above the equilibrium price.