Suppose there is a simultaneous increase in demand and increase in supply. Given this information, we know with certainty that
A. the equilibrium price will increase.
B. the equilibrium quantity will increase.
C. the equilibrium price will increase, and the equilibrium quantity will increase.
D. both the equilibrium price and the equilibrium quantity will increase.
Answer: B
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Derivatives are securities that derive their values from the values of underlying investments
a. True b. False Indicate whether the statement is true or false
LAPD needs to increase the size of its police force, and it will cost them $100,000 per year to recruit two full-time officers. The LAPD should ask the mayor to: a. impose an extra charge on citizens who require extra police protection. b. keep the current force and provide less security
c. hire a private firm to provide extra security. d. increase the tax paid by citizens.
"If we come to a company's rescue this time, they'll take more risks and we'll have to come to their rescue next time, too." The economist who said this most likely
A) believes that the AS curve is upward-sloping. B) prefers monetary policy to fiscal policy when it comes to stabilizing the economy. C) is against bailouts. D) prefers increases in government spending to tax cuts when it comes to stimulating the economy from the demand side. E) none of the above