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Suppose there is a simultaneous increase in the demand for diamonds and increase in the supply of diamonds. Which of the following will occur as a result of these simultaneous events?
a. Both the market clearing price and equilibrium quantity will rise.
b. The market clearing price will fall, but the equilibrium quantity may rise, fall, or stay the same.
c. The market clearing price may rise, fall, or stay the same, but the equilibrium quantity will increase.
d. The market clearing price will fall, but the equilibrium quantity will rise.
Suppose the own price elasticity of demand for good X is -5, its income elasticity is 2, its advertising elasticity is 4, and the cross-price elasticity of demand between it and go
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what causes a shift in the balance of payment?
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Explain the trade-off between equity and efficiency. Identify how individuals and organizations are likely to change their behavior as a result of government actions.
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