Which of the following statements is true of a market?
a. An increase in demand, with no change in supply, will increase the equilibrium price and quantity.
b. An increase in supply, with no change in demand, will decrease the equilibrium price and the equilibrium quantity.
c. A decrease in supply, with no change in demand, will decrease the equilibrium price and increase the equilibrium quantity.
d. All of these.
a
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Within the framework of the AD/AS model, in the long run, output
a. will exceed the economy's long-run capacity. b. will be less than the economy's long-run capacity. c. will converge toward the economy's long-run capacity. d. must equal approximately 95 percent of the economy's long-run capacity.
In a market economy, the people who receive the goods and services produced are those who
A. Have the most political power. B. Want the goods and services the most. C. Need the goods and services the most. D. Are willing and able to pay the market price.