Ceteris paribus, an increase in the supply of a good causes which of the following?
a. Lowers the equilibrium price, and reduces the quantity bought and sold.
b. Raises the equilibrium price, and raises the quantity bought and sold.
c. Raises the equilibrium price, and increases the quantity bought and sold.
d. Lowers the equilibrium price, and increases the quantity bought and sold.
e. Equilibrium price and equilibrium quantity change are indeterminate.
d
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An oligopoly created because of economies of scale is called a
A) natural oligopoly. B) legal oligopoly. C) public oligopoly. D) monopolistic oligopoly. E) scale oligopoly.
In the short run, an increase in the money supply is likely to lead to
a. lower unemployment and lower inflation. b. lower unemployment and higher inflation. c. higher unemployment and lower inflation. d. higher unemployment and higher inflation.