Author Question: With respect to the market clearing price and the equilibrium quantity for good X, an increase in ... (Read 111 times)

RRMR · **on:** Jun 29, 2018

With respect to the market clearing price and the equilibrium quantity for good X, an increase in the demand for and a decrease in supply of the good definitely will

A) increase the market clearing price and the equilibrium quantity of good X.
B) decrease the market clearing price and the equilibrium quantity of good X.
C) increase the market clearing price of good X but lower the equilibrium quantity of X.
D) increase the market clearing price of good X but have an uncertain impact on the equilibrium quantity of X.

Question 2

What is the type of mechanism that answers the basic economic questions through a decentralized decision making process?

A) market system
B) dictatorship
C) command and control
D) mixed economic system