Econ 101 dsm 3 quiz - Study guides, Class notes & Summaries

ECON 101 DSM 3 Exam - Questions and Answers Given linear demand curves, if demand and supply increase by identical amounts, then: the equilibrium price stays the same and the equilibrium quantity rises If the demand curve remains the same, and the supply curve shifts left, then: When supply decreases, a ______ develops at the original price. Equilibrium price will ___________ and equilibrium quantity will _____________ as a new equilibrium is established. Shortage; rise; fall Assume the cost o...