Assuming that the demand and supply of a good have moved in the same direction, and by the same amount, the new equilibrium would represent: no change in price and an increase in quantity exchanged.
a. an increase in price and an increase in quantity exchanged
b. no change in price and an increase in quantity exchanged.
c. a decrease in price and a decrease in quantity exchanged.
d. no change in price, and an indeterminate change in quantity exchanged.
d
You might also like to view...
Many college football teams require a "donation" in order to purchase season tickets. This is
A) price gouging. B) a tie-in sale. C) two part pricing. D) anti-competitive behavior.
What are the determinants of elasticity of supply?
Consumers face tradeoffs except at the point where the indifference curve is tangent to the budget line
a. True b. False Indicate whether the statement is true or false
Suppose a firm is employing labour (L) and capital (K) such that MPK/MPL = PK/PL. If the price of labour rises, the cost -minimizing firm should:
a) employ more capital and less labour because MPK/MPL < PK/PL. b) do nothing. c) employ more labour and less capital because MPK/MPL > PK/PL. d) employ more capital and less labour because MPK/MPL > PK/PL. e) employ more labour and less capital because MPK/MPL < PK/PL.