Refer to the accompanying figure. Assume the market is originally at point W. Movement to point X is the result of: 

A. an increase in demand and an increase in quantity supplied.
B. a decrease in supply and an increase in quantity demanded.
C. an increase in supply and an increase in demand.
D. an increase in supply and an increase in quantity demanded.


Answer: A

Economics

You might also like to view...

A bond offers a $50 coupon, has a face value of $1,000, and has 10 years to maturity. If the interest rate is 4.0% what is the value of this bond?

What will be an ideal response?

Economics

The nominal rate of interest tends to rise during time of inflation because

A. lenders require a higher rate in order to loan out money. B. borrowers are willing to pay a higher rate to obtain loans. C. loans are taken in "cheap" dollars but paid back in dollars of greater purchasing power. D. lenders require a higher rate in order to loan out money AND borrowers are willing to pay a higher rate to obtain loans.

Economics

There are five firms in an industry with sales at $7 million, $6 million, $3 million, $2 million, and $2 million, respectively. The four-firm concentration ratio is:

A. 0.8. B. 0.9. C. 1.1. D. 1.0.

Economics

Compared to the typical high-school graduate, the typical college graduate has greater human capital and thus more options for both low-skill and high-skill jobs. This is called:

A. the signaling effect of a college education. B. the learning effect of a college education. C. the discriminatory effect of a college education. D. All of these

Economics