The level of long-run aggregate supply is affected by all of the following except

Assume the typical shapes of the demand and supply curves. If both demand and supply increase in a competitive market, the equilibrium price will

a. always rise b. always fall c. rise if demand increases more than supply increases d. fall if demand increases more than supply increases e. remain unchanged

If the income elasticity of demand for a good is negative, this implies that

a. only the poor will buy the good. b. as incomes fall, less will be spent on the good. c. as incomes rise, the demand for the good will fall. d. the good does not obey the law of demand.