Suppose improvements in technology cause the supply of natural gas to increase and at the same time the demand for natural gas increases. What are we sure of?
A) Both equilibrium price and quantity increase.
B) Equilibrium price increases.
C) Equilibrium price decreases.
D) Equilibrium quantity increases.
E) Equilibrium quantity decreases.
D
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A firm's labor demand curve is also its marginal revenue product curve. For both the perfectly competitive firm and the output price maker, the labor demand curve slopes downwards
However, there is a difference in the reasons why the labor demand curve slopes downwards. What is this difference?
Which of the following will shift the production possibilities curve outward?
a. a hurricane that destroys buildings throughout Florida b. an increase in the capacity utilization of existing factories c. an increase in the unemployment rate d. a decrease in the market price of both goods