Author Question: If demand and supply both increase A) the equilibrium quantity definitely will increase and ... (Read 124 times)

Lobcity · **on:** Jun 29, 2018

If demand and supply both increase

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

Question 2

A straight-line production possibilities curve takes this shape because

A) the opportunity cost of producing a good is constant.
B) the opportunity cost of producing more of a good is decreasing.
C) resources are better suited for producing one output than another.
D) resources are fixed.