An Increase in Demand Coupled with an Increase in Supply

question 27

Multiple Choice

An increase in demand coupled with an increase in supply results in a(n)

• A) increase in price and an ambiguous effect on equilibrium quantity
• B) increase in equilibrium quantity and a decrease in equilibrium price
• C) decrease in equilibrium quantity and an ambiguous effect on equilibrium price
• D) increase in economic rent
• E) ambiguous effect on equilibrium price and an increase in equilibrium quantity

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Definitions:

Method of Residues

A technique in scientific and logical analysis where elements accounted for by existing explanations are removed to isolate the effect of a single factor.

Radioactivity

The spontaneous emission of particles or radiation from the nucleus of an unstable atom, transforming it into a different element.

Moonlight

To work at an additional job, often secretly and at night.

Method

A planned way of doing something involving systematic and orderly steps or techniques to achieve a desired result or solve a problem.