A recent medical study reports new benefits of cycling. Simultaneously, the price of the parts needed to make bikes falls. If the change in supply is greater than the change in demand, the price will _________ and the quantity will _________

Fundamentally, fiscal policy deals with which of the following?

A. changes in the federal budget B. changes in M1 C. changes in interest rates

Assume the initial equilibrium is at point D in Figure 9-13. If the market demand curve shifts from D1 to D2, and this results in entry of new firms in the long-run, the new equilibrium in this increasing-cost industry will be

Assume the initial equilibrium is at point D in Figure 9-13. If the market demand curve shifts from D₁ to D₂, and this results in entry of new firms in the long-run, the new equilibrium in this increasing-cost industry will be
a.
both C and E
b.
both D and E
c.
at a price less than P₁
d.
at a price higher than P₁
e.
at an output greater than Q₁