The Initial Equilibrium Price in the Market for Web Pages

question 57

Multiple Choice

The initial equilibrium price in the market for Web pages is $200 per page and 1000 Web pages are created in a month.Many new Web design firms now enter the market.As a result,

• A) the supply of Web pages increases and the price falls.
• B) the supply curve of Web pages shifts leftward and the price falls.
• C) the demand for Web pages increases and the price rises.
• D) the supply of web pages increase and the price falls, which then increases the demand for Web pages and the demand curve shifts rightward.
• E) the demand for Web pages increases and the price falls.

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Definitions:

Gross Domestic Product

The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Human Development Index

A statistical tool that measures a country's overall achievement in its social and economic dimensions, based on factors like life expectancy, education, and per capita income levels.

Purchasing Power Parity

An economic theory and a method used to determine the relative value of different currencies and the exchange rate needed to equalize the purchasing power of different currencies.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.