If demand for a good increases and supply remains constant equilibrium price:
a. Will increase, and equilibrium quantity will decrease
b. And quantity will both increase
c. And quantity will both decrease
d. Will decrease, and equilibrium quantity will increase
Answer: b. And quantity will both increase
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Refer to Table 2-1. Assume Tomaso's Trattoria only produces pizzas and calzones. A combination of 24 pizzas and 30 calzones would appear
A) along Tomaso's production possibilities frontier. B) inside Tomaso's production possibilities frontier. C) outside Tomaso's production possibilities frontier. D) at the horizontal intercept of Tomaso's production possibilities frontier.
Absolute real economic growth is an increase in __________ from one period to the next
A) GDP B) Real GDP C) per-capita Real GDP D) per-capita GDP E) none of the above
Excess reserves are important to a banker because
A. if they are not maintained, banking regulators may shut the bank down. B. they are the profits that are divided among the bank's owners. C. they represent the funds available to use to acquire income-producing assets such as loans and securities. D. they indicate profitable banking practices.
The demand curve for labor of a monopolist
A) is horizontal even though the demand curve for labor for a competitive firm is downward sloping. B) slopes down for the same reason as the demand curve for labor of a perfectly competitive firm. C) slopes down because of the law of diminishing marginal product and because the monopolist must lower prices to sell additional units of the good. D) slopes upward because monopolists use more capital than do perfectly competitive firms.