Given a Positively Sloped Supply Curve,when Market Demand Increases

question 72

Multiple Choice

Given a positively sloped supply curve,when market demand increases,

• A)the new equilibrium will have a lower price and a greater quantity.
• B)the new equilibrium will have a lower price and a smaller quantity.
• C)the new equilibrium will have a higher price and a smaller quantity.
• D)the new equilibrium will have a higher price and a larger quantity.
• E)the new equilibrium will have the same price and larger quantity.

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Definitions:

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The price set by a monopolist, which is typically higher than in competitive markets, reflecting the monopolist's market power and lack of competition.

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