Assuming that the demand and supply of a good both increased by the same amount, the new equilibrium would represent:
a. an increase in price and an increase in quantity exchanged
b. no change in price and an increase in quantity exchanged.
c. a decrease in price and a decrease in quantity exchanged.
d. no change in price, and an indeterminate change in quantity exchanged.
b
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A monopolistically competitive firm that is earning profits will, in the long run, experience all of the following except
A) demand for the firm's product becomes more elastic. B) a decrease in demand for its product. C) new rivals entering the market. D) a decrease in the number of rival products.
Suppose your college institutes a new policy requiring you to pay for a permit to park your car in a campus parking lot
a. The cost of the parking permit is not part of the opportunity cost of attending college if you would not have to pay for parking otherwise. b. The cost of the parking permit is part of the opportunity cost of attending college if you would not have to pay for parking otherwise. c. Only half of the cost of the parking permit is part of the opportunity cost of attending college. d. The cost of the parking permit is not part of the opportunity cost of attending college under any circumstances.