What happens to equilibrium price when simultaneously demand increases and supply decreases?
A. Equilibrium price will increase.
B. Equilibrium price will decrease.
C. Equilibrium price will remain the same.
D. Equilibrium price may increase, decrease, or remain the same depending on the magnitude of the shifts in demand and supply.
A. Equilibrium price will increase.
You might also like to view...
The above figure shows the demand and cost curves for a firm in monopolistic competition. In the long run, the demand for this firm's product will
A) decrease as other firms enter the industry. B) decrease as product differences disappear. C) become less elastic as firms exit the industry. D) become less elastic as other firms enter the industry.
Refer to the table below. If the attorney reviews 51 patents, what is the expected cost of infringement?
The above table shows the quantity of patents reviewed by a firm's attorney and the corresponding probability that the firm will infringe on another firm's patent. The cost of infringement is $50,000.
A) $50,000
B) $40,000
C) -$4,000
D) $4,000
When the APC is greater than one,
A. the APS is negative. B. the APS is zero. C. the APS is positive. D. the APS may be positive, zero or negative.
If a good is produced by firms that incur all private and external costs, the price consumers pay
A. will be the correct price, but inefficient. B. will be efficient since it includes all social costs. C. will be too high because the consumers end up paying all of the costs instead of the firm. D. will not be socially acceptable.