Refer to the above diagram, in which S1 and D1 represent the original supply and demand curves and S2 and D2 the new curves. In this market:
A. the new equilibrium price and quantity are both greater than they were originally.
B. point M shows the new equilibrium position.
C. an increase in demand has been more than offset by an increase in supply.
D. the equilibrium position has shifted from M to K.
Answer: C
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NetJets, which is the first time-share program for aircraft, cuts transaction costs by:
a. providing economic service to its passengers. b. being responsible for crews, maintenance, and compliance with Federal regulation. c. reducing the time taken for traveling between destinations. d. allowing owners to transfer their shares, change the size of their shares, and purchase shares of other planes.
In which of the following markets are we most likely to find a monopoly?
a. Automobile production. b. Air travel. c. First-class mail delivery. d. Clothing production.