Suppose the market clearing price for apples rises from $2.00 to $3.00 per pound, and the overall market clearing output increases from 1 million to 2 million pounds. How can we explain the increase in price and increase in market output?
A) Supply increased and demand remained unchanged.
B) Supply decreased and demand decreased.
C) Demand increased and supply remained unchanged.
D) None of the above.
C
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Refer to Figure 10-6. Which diagram demonstrates a decrease in total utility following an increase in the price of candy?
A) the movement from e to d in Panel A B) the movement from g to f in Panel B C) the movement from k to h in Panel C D) none of the above
When a firm is at its minimum efficient scale of operation, it produces the
A) maximum rate of output at which long-run average cost is minimized. B) minimum rate of output at which long-run average cost is minimized. C) maximum rate of output consistent with lowest long-run marginal cost. D) minimum rate of output consistent with lowest long-run marginal cost.