If both supply and demand for a good increase, which of the following will definitely happen?
a. Equilibrium price will remain the same
b. Equilibrium price will increase
c. Equilibrium price will decrease
d. Equilibrium quantity will increase
e. Equilibrium quantity will decrease
d
You might also like to view...
With free trade, the demand curve facing a small-country monopolist:
a. is horizontal at the world price. b. shifts upward by the amount of imports demanded. c. shifts downward by the amount of imports demanded. d. is horizontal at the firm's MC.
Resource use is allocatively efficient if the
A) total cost of what the resource produces is less than the total benefit of what is produced. B) total cost of what the resource produces is equal to the total benefit of what is produced. C) marginal benefit of what the resource produces has diminished to zero. D) marginal cost of what the resource produces is equal to the marginal benefit of what is produced.