If demand for a good increases and supply remains constant equilibrium price:
a. Will increase, and equilibrium quantity will decrease
b. And quantity will both increase
c. And quantity will both decrease
d. Will decrease, and equilibrium quantity will increase
b. And quantity will both increase
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In the diagram to the right, point A provides the ______, point B the ______, and point C the ______.
A. market clearing price; equilibrium point; shortage B. equilibrium price; market equilibrium' surplus C. equilibrium price; market equilibrium; equilibrium quantity D. equilibrium price; surplus or shortage; equilibrium quantity
In part, perfect competition arises if i. each firm's minimum efficient scale is large relative to demand. ii. each firm produces a good or service identical to those produced by its many competitors. iii. there are significant barriers to entry
A) i only B) ii only C) i and ii D) iii only E) ii and iii