When supply increases and the supply curve shifts to the right, equilibrium price and equilibrium quantity will both increase.

Three friends stay in an apartment. Their landlord offers to air-condition the apartment if they pay for the installation charges. Although they all want an air-conditioner, none of them say so. This is an example of the ________

A) free-rider problem B) paradox of thrift C) tragedy of commons D) paradox of plenty

Which of the following refers to a shift in government spending from the country's infrastructure to education and health care?

a. Capital shallowing b. Expropriation c. Liberalization d. Investment diversion e. Import substitution