Which statement most accurately describes what happens when both supply and demand curves shift?
a. When both curves shift, typically we can determine the overall effect on price and on quantity.
b. When both curves shift, typically we can determine the overall effect on price but not on quantity.
c. When both curves shift, typically we can determine the overall effect on price or on quantity, but not on both.
d. When both curves shift, typically we can determine the overall effect on quantity, but not on price.
c. When both curves shift, typically we can determine the overall effect on price or on quantity, but not on both.
You might also like to view...
An increase in the unemployment rate may be represented as a movement from a point on the production possibilities frontier to a point inside the frontier
Indicate whether the statement is true or false
An important advantage of the interview method is that the interviewer
What will be an ideal response?
Decreasing aggregate demand to eliminate an inflationary gap often creates the problem of
A. unemployment. B. increasing real GDP. C. increasing inflation. D. increasing the labor force.
If long-run average total cost decreases as output increases, this is due to:
A. Declining average fixed costs B. The law of diminishing returns C. Economies of scale D. Externalities