If both the supply and demand for computer games increase, then the equilibrium price of the games:
a. is indeterminate and the equilibrium quantity rises
b. is indeterminate and the equilibrium quantity falls.
c. falls and the equilibrium quantity also falls.
d. falls and the change in equilibrium quantity is indeterminate.
a
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Diminishing returns along a production function means that each additional hour of labor employed
A) produces a successively smaller additional amount of real GDP. B) produces a successively larger additional amount of real GDP. C) produces a constant additional amount of real GDP. D) does not produce any additional real GDP. E) forces the real wage rate to rise.
The equilibrium price charged by a monopolistic competitor in the long run after the entry of new firms is ________
A) higher than the equilibrium price charged by the firm before the entry of new firms B) lower than the equilibrium price charged by the firm before the entry of new firms C) lower than the equilibrium price charged by a perfectly competitive firm in the long run D) equal to the equilibrium price charged by the firm before the entry of new firms
The kinked demand curve model best reflects
A) mutual interdependence among sellers. B) a game theory approach to price-output decisions. C) price rigidities in oligopolistic markets. D) All of the above
Which of the following would be most likely to cause a rightward shift of the demand for shares of Planet X, Inc's stock?
a. the appearance of a strong competitor in Planet X's market b. a ban on Planet X's product in a large export market c. the announcement of a profitable new product line from Planet X d. news of a labor strike against Planet X e. the announcement of a new public offering of Planet X stock