Author Question: Holding demand constant, an increase in supply leads to A) lower prices and higher quantity ... (Read 173 times)

LCritchfi · **on:** Jun 29, 2018

Holding demand constant, an increase in supply leads to

A) lower prices and higher quantity demanded.
B) lower prices and lower quantity demanded.
C) higher prices and higher quantity demanded.
D) higher prices and lower quantity demanded.

Question 2

Which of the following leads to an underallocation of resources to a specific economic activity?

A) external costs
B) external benefits
C) marginal costs
D) effluent benefits