Question: Equilibrium price must decrease if: a. demand increases and supply increases b. demand increases and...

Question: Equilibrium price must decrease if:

a. demand increases and supply increases

b. demand increases and supply decreases

c. demand decreases and supply decreases

d. demand decreases and supply increases

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

If both demand and supply increase, then the equilibrium price A) and equilibrium quantity increases. B)...

If both demand and supply increase, then the equilibrium price A) and equilibrium quantity increases. B) falls but the equilibrium quantity increases. C) could either rise or fall, but the equilibrium quantity increases. D) rises, and the equilibrium quantity could either increase or decrease. E) falls, and the equilibrium quantity could either increase or decrease.

Along a given demand curve, a decrease in supply will typically a decrease price, but the...

Along a given demand curve, a decrease in supply will typically a decrease price, but the change in quantity could be in either direction b increase price and decrease the quantity c decrease price but leave quantity unchanged d decrease both quantity and price e increase both quantity and price 2 Stagflation refers to a a combination of rising unemployment and rising trade deficits b a combination of high unemployment and rising prices c high and rapidly increasing inflation d...

Use supply and demand to graphically illustrate the equilibrium price and quantity of books. b....

Use supply and demand to graphically illustrate the equilibrium price and quantity of books. b. Assume: i. Tastes for reading books increase. ii. The cost of paper to book publishers increases. Illustrate and explain how these two assumptions will affect supply, demand, price and quantity. In your analysis, identify the overall change in price and quantity.

An increase in demand can be expected to ["increase", "decrease"] equilibrium price and ["decrease", "increase"] ...

An increase in demand can be expected to ["increase", "decrease"] equilibrium price and ["decrease", "increase"] equilibrium quantity. An increase in supply can be expected to ["decrease", "increase"] equilibrium price and ["decrease", "increase"] equilibrium quantity. If there is an increase in demand and an increase in supply then we can expect equilibrium price to ["increase", "stay the same", "it is not possible to say", "decrease"] and equilibrium quantity to ["decrease", "stay the same", "increase", "it is not...

When price elasticity of demand is equal to unity, a small decrease in price: increases total...

When price elasticity of demand is equal to unity, a small decrease in price: increases total revenue. decreases total revenue. has no effect on revenues. raises marginal revenue.

If demand for bread increases at every price, the equilibrium price of bread will 1 fall....

If demand for bread increases at every price, the equilibrium price of bread will 1 fall. 2 rise. 3 remain unchanged. 4 depend on income.

If the demand for good A increases when the price of good B increases, then goods...

If the demand for good A increases when the price of good B increases, then goods A and B are A. unrelated goods. B. complements. C. substitutes. D. There is not enough information to make a determination.

Draw a supply and demand diagram with a perfectly elastic Supply. a- Determine the equilibrium price...

Draw a supply and demand diagram with a perfectly elastic Supply. a- Determine the equilibrium price and quantity on your graph. Label the relevant area of the graph with letters and determine consumer surplus, producer surplus and total surplus of the market at the equilibrium. b- Show that any deviation from the equilibrium results in a decrease in total surplus. c- Show the change in consumers, producers, and total surplus of the market as a result of an upward shift...

Using the supply and demand method of analysis, explain how a decrease in the price of...

Using the supply and demand method of analysis, explain how a decrease in the price of apple juice and a simultaneous increase in the wage rate paid to orange grove workers affect the equilibrium price and equilibrium quantity of orange juice.

Indicate the movement of the supply and/or demand curves, and the impact on equilibrium price and...

Indicate the movement of the supply and/or demand curves, and the impact on equilibrium price and equilibrium quantity. The Russian government has restricted sugar availability to reduce the supply of illegal liquor (sugar is used to increase alcohol content). Russians also like to sweeten their tea with jam, another sugar product.

Subjects