If the demand and supply curves for a commodity shift to the right by the same amount, then in comparison to the initial equilibrium, the new equilibrium will be characterized by:
A) a higher quantity and price.
B) a lower quantity and a higher price.
C) the same quantity and a lower price.
D) a higher quantity and the same price.
D
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Refer to Edgeworth Box Economy. In an Edgeworth box, a point where two indifference curves are tangent represents
a. the initial endowment point. b. an allocation that both consumers prefer to the initial endowment. c. a competitive equilibrium. d. a Pareto-optimal allocation of goods.
In the monetary small open-economy model with a fixed exchange rate, an increase in the foreign price level has which impact on domestic money demand?
A) It increases it. B) It decreases it. C) It has no impact. D) It depends.
Which of the following is a major advantage of the sole proprietorship?
a. separation of ownership and control b. limited liability for business debt c. transferability of ownership and firm continuity over time d. ease of start-up e. ease of obtaining financing
The Federal Reserve can increase aggregate demand by ________.
A. selling government securities in the open market B. reducing the discount rate C. reducing the money supply D. raising the reserve requirement