Answer to Question #67035 in Macroeconomics for Tessa Flanigan

Question

f a market is initially in equilibrium, ceteris paribus, an increase in demand will: A) increase both the equilibrium price and quantity of the good. B) increase the equilibrium price but decrease the equilibrium quantity of the good. C) decrease the equilibrium price but increase the equilibrium quantity of the good. D) decrease both the equilibrium price and quantity of the good. E) None of the above. 21. If a market is initially in equilibrium, ceteris paribus, an increase in supply will: A) increase both the equilibrium price and quantity of the good. B) increase the equilibrium price but decrease the equilibrium quantity of the good. C) decrease the equilibrium price but increase the equilibrium quantity of the good. D) decrease both the equilibrium price and quantity of the good. E) None of the above

Answer 1

f a market is initially in equilibrium, ceteris paribus, an increase in demand will:

Answer: a

21. If a market is initially in equilibrium, ceteris paribus, an increase in supply will:

Answer: c