Question

When both curves shift a. equilibrium price is always indeterminate. b. equilibrium quantity is always indeterminate....

When both curves shift

a.

equilibrium price is always indeterminate.

b.

equilibrium quantity is always indeterminate.

c.

equilibrium price and equilibrium quantity are indeterminate.

d.

equilibrium price or equilibrium quantity is indeterminate, but we can’t predict which one.

e.

neither equilibrium price nor equilibrium quantity is indeterminate.
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Option d

Equilibrium price or equilibrium quantity is indeterminate, but we can’t predict which one.

When demand shifts left and supply shifts left, the quantity decreases and the price is indeterminant

when demand shifts right and supply shifts left, the price increases and quantity is indeterminate.

When demand shifts left and supply shifts right, the price decreases and quantity is indeterminate.

when demand shifts right and supply shifts right the quantity increases and price is indeterminant

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
If both supply and demand increase simultaneously, the new equilibrium price is ___________ and the new...
If both supply and demand increase simultaneously, the new equilibrium price is ___________ and the new equilibrium quantity is _________________. Select one: a. lower; lower b. lower; indeterminate c. indeterminate; higher d. higher; indeterminate
Question 1. A. What happens to the equilibrium price and quantity of hamburgers when the price...
Question 1. A. What happens to the equilibrium price and quantity of hamburgers when the price of tacos, a substitute, falls? How have the supply and demand curves for hamburgers shifted? Draw a graph showing these shifts. B. What happens to the equilibrium price and quantity of hamburgers when the price of cattle feed increases? How have the supply and demand curves for hamburgers shifted? Draw a graph showing these shifts. C. What happens to the equilibrium price and quantity...
Consider a simultaneous shift of both the demand curve and the supply curve. Before the shift,...
Consider a simultaneous shift of both the demand curve and the supply curve. Before the shift, the market equilibrium is at a point where the price is 6 and the quantity is 25. Also, before the shift, with each additional unit increase in price, the quantity supplied increases by 5 and the quantity demanded decreases by 5. Now, due to a change in some government policy, the demand increases by 10 at all price levels. At the same time, the...
Suppose that both demand and supply decrease and the new equilibrium price is higher than the...
Suppose that both demand and supply decrease and the new equilibrium price is higher than the initial equilibrium price. Which curve shifted more? a) Demand b) Supply c) Neither curve shifted d) The two curves shifted equally
Suppose the market for tomatoes is in equilibrium, and events occur that simultaneously shift both the...
Suppose the market for tomatoes is in equilibrium, and events occur that simultaneously shift both the demand and supply curves to the right. Is it possible to determine how the equilibrium price and/or quantity would change? Explain. Why does an effective price ceiling appear below the equilibrium price rather than above it? Why does an effective price ceiling appear below the equilibrium price rather than above it?
Table: An Increase in Supply A Decrease in Supply An Increase in Demand A B A...
Table: An Increase in Supply A Decrease in Supply An Increase in Demand A B A Decrease in Demand C D Refer to the Table above: Which combination would produce an increase in equilibrium price and an indeterminate change in equilibrium quantity? Note: Start with a demand and supply curves and identify the initial equilibrium price and quantity. Then, change the demand and supply curves (indicated in the table) proportionally and identify the new equilibrium price and quantity. In some...
(Tricky -- or at least hard.) Suppose we observe price and quantity both falling. What does...
(Tricky -- or at least hard.) Suppose we observe price and quantity both falling. What does that tell us about changes in demand and supply? A- Demand must have fallen and supply must have been unchanged. B- Demand must have fallen; supply may either have risen, fallen, orremained unchanged. C- Supply and demand must both have fallen. D- Supply must have fallen; demand must either have fallen or remained unchanged. If there is an increase in the overall level of...
1. The aggregate demand would shift to the right if: a. the money supply increases. b....
1. The aggregate demand would shift to the right if: a. the money supply increases. b. the Cambridge “k” increases. c. an increase in government spending is 100% offset by a decrease in consumer spending. d. foreign sector spending falls. e. All of the above. 2. The short run aggregate supply is viewed as upward sloping: a. showing that higher prices will lead to higher production. b. because it takes a while for wages to rise when prices rise. c....
Evaluate the effect of the following situations on the AD curve, AS curve, equilibrium price level,...
Evaluate the effect of the following situations on the AD curve, AS curve, equilibrium price level, and equilibrium output in the U.S. (a) The U.S. imposes tariffs on foreign goods to promote domestic industry. In retaliation, foreign countries impose tariffs on U.S. goods. (b) Congress decides to decrease personal income taxes, and to compensate for the lost revenue they decrease business subsidies. (c) A technology boom improves technology across industries, improving their productivity. (d) U.S. oil companies discover new large...
Suppose the market is in equilibrium at Po and Qo. If the shift of the demand...
Suppose the market is in equilibrium at Po and Qo. If the shift of the demand curve to left is smaller than the shift of the supply curves to left. The new equilibrium of price will be _____ Po, and the new equilibrium output will be ____Qo. Select one: a. less than; greater than. b. greater than; less than c. less than; less than. d. greater than; greater than
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT