Author Question: All other factors being constant, a reduction in price tends to cause which of the following? A) ... (Read 47 times)

jazziefee · **on:** Jun 29, 2018

All other factors being constant, a reduction in price tends to cause which of the following?

A) an increase in supply and an increase in demand
B) a reduction in supply and an increase in demand
C) an increase in quantity supplied and a reduction in quantity demanded
D) a reduction in quantity supplied and an increase in quantity demanded

Question 2

A characteristic of a good model is that

A) its predictions can be tested using real-world data.
B) it is useful for making irrefutable predictions.
C) it applies to all situations.
D) it predicts perfectly.