Author Question: If demand decreases and supply increases A) the market clearing price will decrease, and the ... (Read 122 times)

Mr. Wonderful · **on:** Jun 29, 2018

If demand decreases and supply increases

A) the market clearing price will decrease, and the equilibrium quantity will increase.
B) the market clearing price will decrease, and equilibrium quantity will decrease.
C) the equilibrium quantity will decrease, but the change in the market clearing price cannot be determined without more information.
D) the equilibrium price will decrease, but the change in the equilibrium quantity cannot be determined without more information.

Question 2

If bagels and croissants are substitute goods, which of the following is likely to occur if the price of bagels has decreased?

A) The demand curve for bagels shifts to the right.
B) A leftward movement along the bagel demand curve.
C) The demand curve for croissants shifts to the right.
D) The demand curve for croissants shifts to the left.