Assume that supply increases slightly and demand increases greatly. Which of the following will happen?

a. Equilibrium price will fall and equilibrium quantity will rise.
b. Equilibrium price will rise and equilibrium quantity will fall.
c. Equilibrium price will rise and equilibrium quantity will rise.
d. Equilibrium price will fall and equilibrium quantity will fall.
e. Neither equilibrium price nor equilibrium quantity will change.

C

Economics

You might also like to view...

Once supply side effects are taken into account, tax cuts for labor income can change

i. the supply of labor. ii. potential GDP. iii. the growth rate of potential GDP. A) iii only B) ii only C) i only D) i and ii E) i and iii

Economics

Describe the three types of unemployment

What will be an ideal response?

Economics