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Assume a Market Is in Equilibrium

question 138

Multiple Choice

Assume a market is in equilibrium.There is an increase in supply,but no change in demand.As a result the equilibrium price ________,and the equilibrium quantity ________.


Definitions:

Monopoly Price

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

Patents and Copyrights

Legal tools that give creators and inventors exclusive rights to their creations and inventions for a certain period, encouraging innovation.

Collude

When two or more firms agree to work together, usually secretly, to limit competition and increase prices.

Monopolist

A monopolist is a sole provider of a particular product or service in the market, possessing the power to control market prices and output levels.

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