Assuming conventional supply and demand curves, changes in the determinants of both supply and demand will generally:
A. alter both equilibrium price and quantity.
B. alter equilibrium quantity but not equilibrium price.
C. alter equilibrium price but not equilibrium quantity.
D. have no effect on equilibrium price or quantity.
Answer: A
You might also like to view...
A local retailer has decided to carry a well-known brand of shampoo. The marketing department tells them that the quarterly demand by an average man is: Qd = 3 - 0.25P and the quarterly demand by an average woman is: Qd = 4 - 0
5P The market consists of 10,000 men and 10,000 women. How may bottles of shampoo can they expect to sell if they charge $6 per bottle? A) 20,000 B) 33,000 C) 25,000 D) 10,000 E) none of the above
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.