An increase in demand and an increase in supply will lead to
A. unambiguous increases in both price and quantity.
B. unambiguous decreases in both price and quantity.
C. an unambiguous increase in quantity, but the effect on price is indeterminate.
D. an unambiguous increase in price, but the effect on quantity is indeterminate.
Answer: C
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Money that is backed by nothing but the faith and confidence that if you accept it in exchange for something, you will be able to exchange it for something else, is referred to as ________
Fill in the blank(s) with correct word
Suppose that the U.S. exchange rate is expected to fall in the future. As a result, in the foreign exchange market, there will be
A) an increase in the demand for dollars, a decrease in the supply of dollars, and a rise in the equilibrium exchange rate. B) an increase in the demand for dollars, a decrease in the supply of dollars, and a fall in the equilibrium exchange rate. C) a decrease in the demand for dollars, an increase in the supply of dollars, and a rise in the equilibrium exchange rate. D) a decrease in the demand for dollars, an increase in the supply of dollars, and a fall in the equilibrium exchange rate.
Suppose the absolute value of the price elasticity of demand for meals at Fortune Buffet House is ?. What happens to sales revenue if the restaurant increases its price by 5 percent?
A) Sales revenue falls by 100 percent. B) Sales revenue falls by less than 5 percent. C) Sales revenue remains unchanged. D) It cannot be determined without information on prices.
Which of the following is true of high and variable rates of inflation
What will be an ideal response?