An increase in both equilibrium price and quantity is a consequence of a(n):
a. increase in supply

If the fixed costs can be ignored, a relatively good approximation of the correct transfer price is

a. average costs b. average fixed costs c. average variable costs d. the market price

Which of the following is a reason why aggregate supply decreased following the housing bubble collapse?

A. Businesses could not access credit to carry out their daily operations. B. Consumption decreased. C. People stopped investing in homes. D. Government tax rates were altered as a response to change in aggregate output.