Author Question: We cannot predict the effect on the equilibrium quantity, but know that the market clearing price ... (Read 221 times)

mcmcdaniel · **on:** Jun 29, 2018

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