3. Suppose that the demand for Paper Clips increases (ie., shifts to the right). Using our standard supply and demand analysis (i.e., supply is upward sloping and demand is downward sloping, and price adjusts to keep the market in equilibrium), what will happen to the equilibrium price, P, and quantity, a. pe will decrease, and b. pe will increase, and pe will increase, and d. pe will decrease, and e. Pe will decrease, and Q C. will decrease. will decrease. will increase. will increase. will stay the same.

3. Suppose that the demand for Paper Clips increases (ie., shifts to the right). Using our standard supply and demand analysis (i.e., supply is upward sloping and demand is downward sloping, and price adjusts to keep the market in equilibrium), what will happen to the equilibrium price, P, and quantity, a. pe will decrease, and b. pe will increase, and pe will increase, and d. pe will decrease, and e. Pe will decrease, and Q C. will decrease. will decrease. will increase. will increase. will stay the same.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 11PA

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