If both the demand curve and the supply curve shift to the right, we can unambiguously conclude that the
A) market clearing price will increase.
B) market clearing price will decrease.
C) equilibrium quantity will increase.
D) equilibrium quantity will decrease.
Answer: C
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If net foreign investment in the United States is positive, how must national saving and domestic investment be related? (Assume that the capital account is zero and net transfers are zero.)
A) Domestic investment can be greater than or less than national saving. B) Domestic investment must be greater than national saving. C) Domestic investment must be less than national saving. D) Domestic investment and national saving must also be positive.
The marginal propensity to consume is defined as:
A) ?C/?Yd. B) ?S/?Yd. C) ?Yd/?C. D) ?Yd/?S.
A few U.S. commercial banks are allowed to have "section 20 affiliates" that can
A) underwrite corporate debt and equity. B) operate in foreign markets. C) branch nationwide regardless of state laws. D) own majority shares in other banks.
An increase in demand accompanied by a simultaneous decrease in supply will have what effect on equilibrium?
a. Price will either rise or fall; quantity will fall. b. Price will rise; quantity will fall. c. Price will rise; quantity will either rise or fall. d. Price will either rise or fall; quantity will rise. e. Price will fall; quantity will either rise or fall.