If supply and demand both simultaneously increase
A) the market clearing price definitely rises, and the equilibrium quantity definitely falls.
B) the market clearing price definitely rises, and the effect on the equilibrium quantity is indeterminate.
C) the market clearing price definitely falls, and the effect on the equilibrium quantity is indeterminate.
D) the effect on the market clearing price is indeterminate, and the equilibrium quantity definitely rises.
D
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Refer to Figure 4-6. At the price P2, consumers are willing to buy the Q2 pounds of granola. Is this an economically efficient quantity?
A) Yes, otherwise consumers would not buy Q2 units. B) Yes, because the price P2 shows what consumers are willing to pay for the product. C) No, the marginal benefit of the last unit (Q2 ) exceeds the marginal cost of that last unit. D) No, the marginal cost of the last unit (Q2 ) exceeds the marginal benefit of the last unit.
Cyclical unemployment is the result of the business cycle
a. True b. False Indicate whether the statement is true or false