If both demand and supply rise, which of the following must be true?
a. The equilibrium quantity will rise.
b. The equilibrium quantity will fall.
c. The equilibrium quantity will not change.
d. The change in the equilibrium quantity is indeterminate.
a. The equilibrium quantity will rise.
You might also like to view...
If the federal government decreases its expenditures on goods and services by $10 billion and decreases taxes on personal incomes by $10 billion, which of the following will occur in the short run?
A) The federal budget deficit will increase by $10 billion B) The federal budget deficit will decrease by $10 billion C) Aggregate income will remain the same D) Aggregate income will increase by up to $10 billion E) Aggregate income will decrease by up to $10 billion
A common misconception about supply is that
a. supply depends on many other variables. b. price is a major determinant of quantity. c. it is a fixed amount. d. quantity cannot be determined in advance. e. All of the above are correct.
How do you know that firms benefit society?
A. Entrepreneurs start businesses. B. Customers voluntarily pay for their products. C. Firms pay taxes and employ people. D. Firms earn profits and produce goods.
If the percentage change in the quantity demanded of a good is greater than the percentage change in price, price elasticity of demand is:
A. elastic. B. inelastic. C. perfectly inelastic. D. perfectly elastic.