Consider a market that is in equilibrium. If it experiences both an increase in demand and an increase in supply, what can be said of the new equilibrium? The equilibrium:
A. price and quantity will both rise.
B. quantity will definitely rise, while the equilibrium price cannot be predicted.
C. price will definitely rise, while the equilibrium quantity cannot be predicted.
D. price and quantity will both fall.
B. quantity will definitely rise, while the equilibrium price cannot be predicted.
You might also like to view...
The smaller the typical depositor at a financial institution, the __________ likely that some of the institution's deposits are federally insured and thus the __________ heavily that institution tends to be regulated
A) less; less B) less; more C) more; less D) more; more
Which of the following is a legal remedy for a breach of the contract between parties?
a. Liquidated damages b. Imprisonment c. Unitization d. Specificity