Apple improves the resolution of its iPhone camera by doubling the number of megapixels. This is an example of vertical differentiation.

In the long run, the real interest rate is determined by

A) the nominal interest rate. B) saving supply and investment demand. C) the multiplier effect. D) the expected inflation rate. E) Fed actions.

Consider a market that is in equilibrium. If it experiences both a decrease in demand and a decrease in supply, what can be said of the new equilibrium? The equilibrium:

A. price and quantity will both rise. B. quantity will definitely fall, while the equilibrium price cannot be predicted. C. price and quantity will both fall. D. price will definitely fall, while the equilibrium quantity cannot be predicted.