If both demand and supply increase, what will be the effect on the equilibrium price and quantity?
A) Both the price and the quantity will increase.
B) The quantity will increase but the price could either rise, fall, or remain the same.
C) The price will fall but the quantity will increase.
D) The price will rise but the quantity could either increase, decrease, or remain the same.
B
You might also like to view...
The value of the marginal product of labor equals the marginal product of labor times the:
A. price of output. B. real wage. C. nominal wage. D. quantity of labor.
Suppose that people find out that eating more fish improves their health, leading them to increase their demand for fish. As a result, the equilibrium price of fish ________ and the equilibrium quantity ________
A) rises; decreases B) rises; increases C) falls; decreases D) falls; increases
Refer to Scenario 7.8 below to answer the question(s) that follow. SCENARIO 7.8: A swimming pool cleaning company has the following production possibilities. With one, two, three, and four workers, the company can clean 5, 12, 17, and 20 pools per day, respectively. Refer to Scenario 7.8. The average product of labor with four workers is
A. 3. B. 3.3. C. 5. D. 13.5.
To maximize profit, a ________ firm will produce where marginal revenue equals marginal cost.
A. perfectly competitive B. monopolistic C. monopolistically competitive D. All of the above are correct.