Exhibit 4-6 Demand and supply curves
If the market supply increases and, simultaneously, market demand decreases, the new equilibrium will show:
A. market price will decrease, and market quantity exchanged could increase, decrease, or remain unchanged.
B. market price will increase, and market quantity exchanged will decrease.
C. market price will increase, and the quantity exchanged could increase, decrease, or remain the same.
D. market price could increase, decrease, or remain the same, and quantity exchanged will increase.
Answer: A
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Using the "It's not fair if the result isn't fair" principle of fairness, an income tax designed to transfer wealth from the rich to the poor
A) increases efficiency and equity. B) increases efficiency and does not affect equity. C) decreases efficiency and increases equity. D) decreases efficiency and equity.
One of the main reasons that Malthus' prediction of repeated wars and famines did not come true is
a. the government's intervention in the economy b. the implementation of an income tax to raise money for governmental spending c. increases in the supply of labor d. continuing technological change e. changes in planned investment spending