Author Question: If both supply and demand simultaneously decrease A) the market clearing price definitely rises, ... (Read 94 times)

cartlidgeashley · **on:** Jun 29, 2018

If both supply and demand simultaneously decrease

A) the market clearing price definitely rises, and the equilibrium quantity definitely falls.
B) the market clearing price definitely rises, and the effect on the equilibrium quantity is indeterminate.
C) the market clearing price definitely falls, and the effect on the equilibrium quantity is indeterminate.
D) the effect on the market clearing price is indeterminate, and the equilibrium quantity definitely falls.

Question 2

The largest share of federal government tax receipts is derived from

A) corporate income taxes.
B) excise taxes.
C) social insurance contributions.
D) individual income taxes.