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.
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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
Which of the following increases the equilibrium price of a used car and decreases the equilibrium quantity?
A.an announcement by the U.Attorney General that the windows on older cars were made with cheaper glass that can explode at high speeds
B.new federal legislation that raises the legal driving age to twenty-four in all states
C.a new fee that used car dealers must pay to the government on all sales of used cars
D.All of the above because each is consistent with the law of demand.
When supply and demand both increase, the
A.quantity definitely decreases.
B.quantity definitely increases.
C.price definitely increases.
D.price definitely decreases.
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