Refer to the above figure. Suppose that the supply curve shifts from SA to SB while the demand curve shifts from DA to DB. Which of the following is TRUE about the results of the shifts in the supply and demand curves?
A) The equilibrium price increases while the equilibrium quantity remains unchanged.
B) Both the equilibrium price and equilibrium quantity increase.
C) The equilibrium price remains unchanged while the equilibrium quantity increases.
D) Both the equilibrium price and equilibrium quantity remain unchanged.
C
You might also like to view...
One type of regulatory practice common for public utilities is setting a price for consumers based on the average cost of production plus the normal rate of profit expected; this is known as what kind of regulation?
a. Cost-plus regulation b. Price cap regulation c. Bundling regulation d. Antitrust regulation
A consumer holds money to meet spending needs. This would be an example of the
A. use of money as legal tender. B. transactions demand for money. C. asset demand for money. D. use of money as a measure of value.