If Both Demand and Supply Increase, Then the Equilibrium Price
If both demand and supply increase, then the equilibrium price
A)and equilibrium quantity increases.
B)falls but the equilibrium quantity increases.
C)could either rise or fall, but the equilibrium quantity increases.
D)rises, and the equilibrium quantity could either increase or decrease.
E)falls, and the equilibrium quantity could either increase or decrease.
There have been severe problems in the Atlantic fishing industry, with large falls in the fish stocks.As a result,
A)the price of fish will fall.
B)the quantity of fish sold will increase as fishermen will catch more to make up for the shortage.
C)the equilibrium price and the equilibrium quantity will fall or rise depending on how large the fall in fish stocks.
D)both the equilibrium price and the equilibrium quantity will rise, as consumers will desire even more fish, because they are scarce.
E)the fall in the fish stocks will lead to a shortage, a rise in the equilibrium price and a decrease in the equilibrium quantity.
The fish stocks in the Atlantic fishing industry have decreased.As a result, we would expect
A)an increase in the demand for meat (e.g., beef)because meat is a complement of fish.
B)a fall in the price of fish, leading to a decrease in the demand for meat, because meat and fish are substitutes.
C)a fall in the price of fish, leading to an increase in the demand for meat, because meat and fish are substitutes.
D)an increase in the demand for meat because meat is a substitute for fish.
E)a rise in the price of fish, leading to a decrease in the demand for meat, because meat and fish are complements.
If Canadians suddenly develop a strong urge to escape the cold winter by taking vacations in Hawaii, the
A)price of a vacation in Hawaii rises and the quantity demanded of Hawaiian vacations decreases.
B)price of a skiing vacation in the mountains rises.
C)initial result of the change is a surplus of vacations in Hawaii, leading to a price rise.
D)price of airline tickets falls as ticket agents make deals in response to this change.
E)price of luggage will rise, because luggage and vacations are complements.