When supply and demand for a product increase simultaneously, we
A. cannot predict the market clearing price, but know that the equilibrium quantity will increase.
B. can predict that both the market clearing price and the equilibrium quantity will increase.
C. can predict that both the market clearing price and the equilibrium quantity will decrease.
D. cannot predict the change in either the equilibrium quantity or the market clearing price.
Answer: A
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What will be the principal and most immediate effect on the supply or demand of raw cotton grown in the United States if beef demand rises and ranchers are induced to reduce their flocks of sheep (for wool) in order to grow more cattle?
A) Decrease in demand. B) Decrease in supply. C) Increase in demand. D) Increase in supply
Suppose a movie theater raises its ticket prices by 10% and the total revenue it receives in ticket sales doesn't change one bit from the previous week
What can you say about the price elasticity of demand at that new price? Could this go on indefinitely? In other words, would continued price increases leave total revenue unchanged without bound? Why or why not?
The nominal exchange rate is
A) the difference between the interest rate in one country and the interest rate in another country. B) the rate at which a bond may be exchanged for currency. C) the rate at which a stock may be exchanged for currency. D) the price of one country's currency in terms of another's.
Explain why movie theaters charge more for evening performances than for matinees