If the supply of a good increased, what would be the effect on the equilibrium price and quantity?
a. Price would increase and quantity would decrease.
b. Price would decrease and quantity would decrease.
c. Price would increase and quantity would increase.
d. Price would decrease and quantity would increase.
D
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Compared to private bargaining, using eminent domain to acquire land generally
A) keeps negotiation costs low. B) is more time consuming and less successful. C) reduces cooperative surplus. D) is frowned upon by the government.
The market supply schedule reflects the total quantity: a. supplied at market price
b. supplied by all of the producers at the equilibrium price. c. supplied at each price by all of the producers. d. the vertical summation of the supply curves for individual firms.
Which of the following is not a tool of monetary policy?
a. open market operations b. reserve requirements c. changing the discount rate d. increasing the government budget deficit
Suppose Island Bikes, a profit-maximizing firm, is the only bike rental company in a small resort town. The marginal cost to Island Bikes of renting out a bike is $3, and Island Bikes has no fixed costs. Each day Island Bikes has six potential customers, whose reservation prices are listed in the table. CustomerReservation Price($/Rental)A22B16C12D8E6F4What is the socially optimal number of bikes for Island Bikes to rent out each day?
A. 5 B. 3 C. 6 D. 4