Questions and Answers
If both the demand and supply for a good increase, what is the effect on the equilibrium price?
The equilibrium price falls
When there is a decrease in demand combined with a decrease in supply, what would happen to the market price of a product?
The market price would increase
In the context of minimum wage and unemployment, what happens if workers with minimum wage jobs earn more money from working?
Unemployment becomes cyclical
If a price ceiling is set above the equilibrium price of a product, what is the likely outcome?
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