We cannot predict the effect on the equilibrium quantity, but ...

[mcmcdaniel]

We cannot predict the effect on the equilibrium quantity, but know that the market clearing price will increase when
 
  A) supply decreases and at the same time demand increases.
  B) supply increases and demand increases simultaneously.
  C) supply and demand decreases simultaneously.
  D) supply and demand increases simultaneously.

Question 2

Refer to the above figures. Which of the panels would be consistent with the situation in which external benefits exist?
 
  A) Panel 1
  B) Panel 2
  C) Panels 1 and 2
  D) neither panel

[britb2u]

Answer to Question 1

A

Answer to Question 2

B

[mcmcdaniel]

Thanks for the timely response, appreciate it

[jackie]

YES! Correct, THANKS for helping me on my review