Assume that both the demand curve and the supply curve for MP3 players shift to the right but the demand curve shifts more than the supply curve. As a result
A) the equilibrium price of MP3 players will decrease; the equilibrium quantity may increase or decrease.
B) the equilibrium price of MP3 players will increase; the equilibrium quantity may increase or decrease.
C) the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will increase.
D) both the equilibrium price and quantity of MP3 players will increase.
D
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In the demand equation log(Q) = a - b log(P) + b2 log(P2) + c log(I), where P is the price of the good in question, P2 is the price of a second good and I
is income, the second good must be: A. a complement for the good in question. B. a normal good. C. an inferior good. D. a substitute for the good in question.
The Keynesian model of aggregate demand includes:
I. government purchases and taxes. II. consumer spending and investment spending. III. exports plus imports. a. I b. I and II c. II and III d. I, II, and III