Assuming that the demand and supply of a good have moved in opposite directions, but by the same amount, the new equilibrium would represent:
a. an increase in price and an increase in quantity exchanged
b. no change in price and an increase in quantity exchanged.
c. a decrease in price and a decrease in quantity exchanged.
d. an indeterminate change in price, but no change in quantity exchanged.
d
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The invisible hand suggests that:
A) individuals working for self-interest will eventually maximize the well-being of society. B) equilibrium in a competitive market is determined independent of demand and supply. C) government intervention is necessary to rectify market imperfections. D) the price mechanism allocates resources only to the people with high income in the country.
If the prices of energy products rise sharply, consumers will most likely
a. sharply reduce their consumption of these products in both the short run and the long run. b. reduce their consumption of these products slightly in the short run and more sharply in the long run. c. reduce their consumption of these products sharply in the short run, but in the long run consumption will fall by only a small amount. d. increase their consumption of these products slightly in the short run and more sharply in the long run.