We cannot predict the effect on the equilibrium quantity, but know that the market clearing price will increase when
A) supply decreases and at the same time demand increases.
B) supply increases and demand increases simultaneously.
C) supply and demand decreases simultaneously.
D) supply and demand increases simultaneously.
Answer: A
You might also like to view...
Inequality within countries has been __________, and inequality between countries has been _________ in recent decades.
A. increasing; decreasing B. increasing; increasing C. decreasing; increasing D. decreasing; decreasing
According to Adam Smith's invisible hand principle, productive actions that promote the general welfare of society will be undertaken when
a. political representatives are elected democratically. b. competitive markets direct the actions of self-interested individuals. c. the selfish instincts of individuals are controlled. d. workers are able to organize and develop strong unions.
Suppose a monopolist's demand curve lies below its average variable cost curve. The firm will:
a. earn an economic profit. b. stay in operation in the short-run. c. shut down. d. earn an economic profit in the long run.
The major decline in oil prices in early 1980 that resulted in bankruptcy of many banks and saving and loans in the southwest U.S. resulted in a major Midwestern bank taking bankruptcy because of
A. interstate banking. B. intra bank loans. C. cost of gasoline declined at the pump. D. decrease in the values of oil leases in the Midwest.