In which of the following situations will both market clearing price and the equilibrium quantity increase?
A) an increase in demand with no change in supply
B) an increase in supply with no change in demand
C) a decrease in supply with no change in demand
D) a decrease in demand with no change in supply
Answer: A
You might also like to view...
Using the data in the above table, if the firm employs 5 workers, total product (measured in units per day) and average product and marginal product of the fifth worker (measured in units per worker) are
A) 23, 5.00, and 4 respectively. B) 23, 5.75, and 4 respectively. C) 25, 5.00, and 2 respectively. D) 25, 5.75, and 4 respectively.
As an individual, you cannot participate in the financial markets to issue new stock or sell new bonds because
A) it is too costly for individual savers to research your credit worthiness. B) you have a bad reputation. C) your good reputation is insufficient to convince savers. D) your bank has foreclosed on your automobile loan.