Assume the typical shapes of the demand and supply curves. If both demand and supply increase in a competitive market, the equilibrium price will
a. always rise
b. always fall
c. rise if demand increases more than supply increases
d. fall if demand increases more than supply increases
e. remain unchanged
C
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The value of total output and total income in the simple circular flow model
A) include only intermediate goods. B) are equal to each other. C) are measures of the economy's level of savings. D) are related in the sense that national income is less than national product.
Individuals base their demand for an asset on
A) the expected return the asset offers compared with the returns offered by other assets. B) the riskiness of the asset's expected return. C) the asset's liquidity. D) the expected return, how risky that expected return is, and the asset's liquidity. E) the aesthetic qualities of the asset.