If the demand curve is horizontal and the supply curve is vertical, shifts of the supply curve will lead to
A) changes in the equilibrium quantity only.
B) changes in the equilibrium price only.
C) changes in both the equilibrium price and quantity.
D) changes in the quantity demanded only.
A
Economics
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How is an exchange rate depreciation likely to affect imports and exports in the short run and over a longer period of time?
What will be an ideal response?
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Refer to the graph shown. At the price of $1.60, given market demand for the product:
A. the firm will make zero economic profits. B. there will be a shortage of the product. C. the firm will go out of business. D. the firm will incur losses.
Economics