Which of the following would definitely cause an increase in the equilibrium price and an increase in the equilibrium quantity of watermelons?
A) an increase in demand and an increase in supply
B) an increase in supply
C) an increase in supply and an increase in demand greater than the increase in supply
D) a decrease in demand and an increase in supply
Answer: C
You might also like to view...
Suppose the marginal utility of a dollar for Carl is 7 utils and for Judy, 12 utils. According to Lerner, society will maximize its total utility if
a. we transfer money from Carl and give it to Judy as long as the marginal utility of money for Carl is lower than that of Judy's b. we transfer money from Carl and give it to Judy as long as the marginal utility of money for Carl is higher than Judy's c. we transfer money from Judy and give it to Carl as long as the marginal utility of money for Judy is lower than Judy's d. we allow the market to determine the marginal utilities of Carl and Judy regardless of whose is higher e. Carl and Judy have the same utility functions
When we compare economic welfare in a monopoly market to a competitive market, the profits earned by the monopolist represent
a. a loss in total welfare. b. a transfer of benefits from the buyer to the seller. c. the higher marginal costs incurred by the monopolists in comparison to competitive firms. d. All of the above are correct.