When supply and demand both increase, equilibrium
a. price will increase.
b. price will decrease.
c. quantity may increase, decrease, or remain unchanged.
d. price may increase, decrease, or remain unchanged.
d
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An increase in money supply causes the real interest rate to ________ and output to ________ in the short run, before prices adjust to restore equilibrium
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
Suppose the market for autoworkers is initially in equilibrium, but then the automakers purchase capital goods that are a substitute for workers. What happens in the market for autoworkers?
What will be an ideal response?
All developed countries achieve their status as a result of large supplies of natural resources
a. True b. False
What impact do the following have on the aggregate demand curve? Give suitable examples to support your answers
a. The Wealth Effect b. The Interest Rate Effect c. The Exchange Rate Effect