If demand remains constant and supply increases, what happens to price and quantity? A. Decrease price; increase quantity B. Decrease price; decrease quantity C. Increase price; increase quantity D. Increase price; decrease quantity

If demand remains constant and supply increases, what happens to price and quantity? A. Decrease price; increase quantity B. Decrease price; decrease quantity C. Increase price; increase quantity D. Increase price; decrease quantity

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter4: Markets In Action

Section: Chapter Questions

Problem 1SQ

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Question

If demand remains constant and supply increases, what happens to price and quantity?

A.
Decrease price; increase quantity

B.
Decrease price; decrease quantity

C.
Increase price; increase quantity

D.
Increase price; decrease quantity

FIll - IN
1. Price floors cause________________________ and price ceilings cause ______________________.
  
  shortage
  surplus

Definition Video Definition Lowest legal price that can be paid in a market for goods and services, labor, or financial capital. A price floor protects a price from falling below a stipulated level. Video

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