Assume That Both the Demand Curve and the Supply Curve

question 118

Multiple Choice

Assume that both the demand curve and the supply curve for MP3 players shift to the right but the demand curve shifts more than the supply curve.As a result

• A)both the equilibrium price and quantity of MP3 players will increase.
• B)the equilibrium price of MP3 players will increase; the equilibrium quantity may increase or decrease.
• C)the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will increase.
• D)the equilibrium price of MP3 players will decrease; the equilibrium quantity may increase or decrease.

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Definitions:

Consumption H

This term is unclear without additional context but could imply a specific form of consumption denoted by "H."

Pooling Equilibrium

A situation in game theory where different types with different information are indistinguishable to others, leading to a common action or outcome.

Output

Output refers to the total amount of goods or services produced by a company, industry, or economy in a given period.

Examination

A formal test of a person's knowledge or proficiency in a subject or skill.