MCQ 23 Suppose the market for barley can be represented by the standard market model, with upward-sloping supply curve and downward-sloping demand curve. Starting from an initial equilibrium position, with supply and demand in balance, suppose there is both a decrease in the demand for barley (a leftward shift of the demand curve) and a decrease in the supply of barley (a leftward shift of the supply curve). After price and quantity have adjusted to the new equilibrium, we would expect to observe: A a lower price and a smaller quantity bought and sold B a smaller quantity bought and sold, but the change in price can't be determined from the available information C I do not want to answer this question. D a higher price, but the change in quantity bought and sold can't be determined from the available information neither the change in price nor the change in quantity bought and sold can be determined from the available information F a higher price and a smaller quantity bought and sold

MCQ 23 Suppose the market for barley can be represented by the standard market model, with upward-sloping supply curve and downward-sloping demand curve. Starting from an initial equilibrium position, with supply and demand in balance, suppose there is both a decrease in the demand for barley (a leftward shift of the demand curve) and a decrease in the supply of barley (a leftward shift of the supply curve). After price and quantity have adjusted to the new equilibrium, we would expect to observe: A a lower price and a smaller quantity bought and sold B a smaller quantity bought and sold, but the change in price can't be determined from the available information C I do not want to answer this question. D a higher price, but the change in quantity bought and sold can't be determined from the available information neither the change in price nor the change in quantity bought and sold can be determined from the available information F a higher price and a smaller quantity bought and sold

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter12: The Partial Equilibrium Competitive Model

Section: Chapter Questions

Problem 12.12P

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