If the price of a CD is equal to the equilibrium price, there will be ( ) of CDs and the price will ( ).
A.surplus; rise
B.surplus; fall
C.shortage; fall
D.neither a shortage nor surplus; not change
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The price of a good will fall if
A.there is a surplus at the current price.
B.the current price is less than the equilibrium price.
C.the quantity demanded exceeds the quantity supplied.
D.the price of a complement in consumption falls.
If the U.S. Surgeon General announced that increased grapefruit juice consumption could help prevent heart attacks, what would happen to the equilibrium price and quantity of grapefruit juice?
A.Price and quantity both increase.
B.Price and quantity both decrease.
C.Price increases but quantity decreases.
D.Price decreases but quantity increases.
Which of the following always raises the equilibrium price?
A.an increase in both demand and supply
B.a decrease in both demand and supply
C.an increase in demand combined with a decrease in supply
D.a decrease in demand combined with an increase in supply
If both the demand and supply increase, the equilibrium quantity ( ) and the equilibrium price ( ).
A.increases; falls
B.decreases; might rise, fall, or not change
C.decreases; rises
D.increases; might rise, fall, or not change
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