What is the effect on the price and quantity of a product if the demand decreases and the supply simultaneously increases?
What will be an ideal response?
The equilibrium price unambiguously falls. The effect on the equilibrium quantity is ambiguous. The equilibrium quantity decreases if the decrease in demand exceeds the increase in supply. The equilibrium quantity increases if the increase in supply exceeds the decrease in demand. The equilibrium quantity is unchanged if the decrease in demand equals the increase in supply.
Economics
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What will be an ideal response?
Economics
If we were the only two people in the world and I like bananas while you hate them, efficiency demands that I get all bananas.
Answer the following statement true (T) or false (F)
Economics