Which of the following accurately shows the sequence that happens when demand for a product increases?
a. Price of product increases; the product’s supply increases; buyers compete for the product; a new equilibrium is reached.
b. The product’s supply increases; buyers compete for the product; price of product increases; a new equilibrium is reached.
c. Buyers compete for the product; price of product increases; the product’s supply increases; a new equilibrium is reached.
d. Buyers compete for the product; the product’s supply increases; price of product increases; a new equilibrium is reached.
c. Buyers compete for the product; price of product increases; the product’s supply increases; a new equilibrium is reached.
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Unless a good is a Giffen good, the demand curve shifts to the right as income rises.
Answer the following statement true (T) or false (F)
Assume a tomato farmer owns one truck and employs one driver. One Saturday a month he brings one truck load of tomatoes to the Farmer's Market
Over time he discovers that the demand for his tomatoes has increased dramatically as a result of increased marketing and advertising for the market. Explain both the short run and the long run impact on the equilibrium price and quantity of the farmer's tomatoes. Explain in terms of elasticity of supply.
The general tax can be considered a retail sales tax.
A. True B. False C. Uncertain
If oranges were found to cure cancer,
A) the equilibrium price of apples would likely fall. B) the equilibrium price of oranges would likely increase in the near term. C) the equilibrium quantity of oranges would likely increase. D) All of the above.