How does the equilibrium quantity traded change when there is an increase in supply and a decrease in demand?
The impact on equilibrium quantity is indeterminate because the increase in supply increases the equilibrium quantity and the decrease in demand decreases it. The change in the equilibrium quantity will vary depending on the relative changes in supply and demand. If the decrease in demand is greater than the increase in supply, the equilibrium quantity will decrease. If the increase in supply is greater than the decrease in demand, the equilibrium quantity will increase.
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In the prisoners' dilemma game, each player
A) has only one possible strategy. B) can choose from two strategies. C) can choose from three strategies. D) can choose from four strategies.
What are the terms of exchange and how are these terms related to the price?
What will be an ideal response?