If a product is manufactured under conditions of constant cost, an increase in the demand for the product will increase
a. both equilibrium quantity and equilibrium price in the long run.
b. equilibrium price, but equilibrium quantity will be unchanged in the long run.
c. equilibrium price but reduce equilibrium quantity in the long run.
d. equilibrium quantity, but equilibrium price will be unchanged in the long run.
D
You might also like to view...
Why hasn't the U.S. ratified the Kyoto Protocol?
a. It views the agreement as not merely flawed or incomplete, but actually harmful. b. It fears the economic consequences of reducing fossil fuel use. c. It does not consider the environment a major priority. d. Its leaders and politicians overwhelmingly believe global warming is not a real threat.
Refer to Figure 4.1, which shows Molly's and Ryan's individual demand curves for compact discs per month. Assuming Molly and Ryan are the only consumers in the market, what is the market quantity demanded at a price of $3?
A) 6 B) 9 C) 15 D) 20