Author Question: Which of the following could not cause an increase in both the equilibrium price and quantity of a ... (Read 34 times)

cool · **on:** Jun 30, 2018

Which of the following could not cause an increase in both the equilibrium price and quantity of a good exchanged?
a. Increased input prices.
b. Decreased incomes for an inferior good.
c. An increase in the price of a substitute good.
d. Increased tastes for the good.

Question 2

In general, a bank that held excess reserves would earn lower profits as a result.
a. True
b. False
Indicate whether the statement is true or false