An increase in both supply and demand causes which of the following?
A. Equilibrium price falls.
B. Equilibrium price rises.
C. Equilibrium price change is indeterminate.
D. Equilibrium quantity change is indeterminate.
Answer: C
You might also like to view...
You find that to attract a sufficient number of workers you have to pay them more dollars. Given the price of your output you determine you are paying your workers more in goods than before. Which of the following has risen?
a. The real and nominal value of the wages you pay. b. The real but not the nominal value of wages you pay. c. The nominal but not the real value of the wages you pay. d. Neither the real nor the nominal value of the wages you pay.
The costs borne by an individual victim of theft can diverge from the social costs if the
A. stolen items were destroyed by the thief. B. stolen items were covered by insurance. C. stolen items were priceless. D. all of the options are correct.
Small, open economies are probably more vulnerable to contagion than large, relatively closed economies.
Answer the following statement true (T) or false (F)
A market equilibrium is only efficient if:
A. the consumer surplus and the producer surplus associated with a given transaction are equal. B. output is distributed equitably among consumers. C. consumer surplus and producer surplus are both zero. D. all relevant costs and benefits are reflected in the market supply and demand curves.