An increase in the demand for LED light bulbs due to changes in consumer tastes, accompanied by an increase in the supply of LED light bulbs as a result of government subsidies, will result in
A) an increase in the equilibrium quantity of LED light bulbs; the equilibrium price may increase or decrease.
B) an increase in the equilibrium price of LED light bulbs and no change in the equilibrium quantity.
C) an increase in the equilibrium quantity of LED light bulbs and no change in the equilibrium price.
D) an increase in the equilibrium price of LED light bulbs; the equilibrium quantity may increase or decrease.
Question 2
________ shows that if all resources are fully and efficiently utilized, more of one good can be produced only by producing less of another good.
A) The mixed market system B) Comparative advantage
C) The production possibilities frontier model D) Absolute advantage
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