If demand rises, what happens to equilibrium price and quantity?
Fill in the blank(s) with the appropriate word(s).
price rises; quantity rises
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Refer to the figure above. If the optimal number of machines rented is 100, the market rental price must be:
A) $3 per month. B) $4 per month. C) $5 per month. D) $7 per month.
In a graph of a firm's short-run total costs and total revenue, the total cost and the total revenue curves, respectively, will intersect the vertical axis
A) above the origin, above the origin. B) above the origin, at the origin. C) at the origin, at the origin. D) below the origin, below the origin.
If prices in the current year are higher on average than in the base year, real GDP in the current year ________ nominal GDP in the current year.
A. could be greater than or less than B. is less than C. is equal to D. is greater than
Answer the following statements true (T) or false (F)
1) If government decreases its purchases by $20 billion and the MPC is .8, equilibrium GDP will decrease by $100 billion. 2) If the MPC is .9, a $20 billion increase in a lump-sum tax will reduce GDP by $200 billion. 3) A recessionary expenditure gap in a mixed open economy can be measured as the extent to which aggregate expenditures (C a + I g + X n + G) fall short of real GDP at the full-employment level of real GDP. 4) The recessionary expenditure gap is the amount by which the equilibrium GDP and the full- employment GDP differ.