Author Question: If demand increases and supply decreases, what is the effect on equilibrium price and equilibrium ... (Read 94 times)

Kthamas · **on:** Jun 29, 2018

If demand increases and supply decreases, what is the effect on equilibrium price and equilibrium quantity?

A) The price falls and the quantity might increase, decrease, or remain the same.
B) The price rises and the quantity might increase, decrease or remain the same.
C) The quantity decreases and the price might rise, fall, or remain the same.
D) The quantity increases and the price might rise, fall, or remain the same.

Question 2

The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles. What is the total fixed cost of producing 4,500 frijoles?

A) 1000
B) 8000
C) 9000
D) More information is needed to determine the answer.