Suppose there are a positive demand shock and a negative supply shock in a perfectly competitive market. Which of the following cannot happen? Group of answer choices A. The equilibrium price increases. B. The equilibrium price decreases. C. The equilibrium quantity increases. D. The equilibrium quantity decreases. E. None of the above.
Suppose there are a positive demand shock and a negative supply shock in a perfectly competitive market. Which of the following cannot happen? Group of answer choices A. The equilibrium price increases. B. The equilibrium price decreases. C. The equilibrium quantity increases. D. The equilibrium quantity decreases. E. None of the above.
Chapter4: Markets In Action
Section: Chapter Questions
Problem 5SQP
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Question
Suppose there are a positive demand shock and a negative supply shock in a
Group of answer choices
A. The equilibrium price increases.
B. The equilibrium price decreases.
C. The equilibrium quantity increases.
D. The equilibrium quantity decreases.
E. None of the above.
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