9) Imagine there is originally an equilibrium and call it the old equilibrium. Suppose that the...

Transcribed Image Text:

9) Imagine there is originally an equilibrium and call it the "old" equilibrium. Suppose that the government sends a check of $1,200 to every US citizen. Assume that supply is fixed for this question. Car is a normal good. Compared to the "old" equilibrium, the new equilibrium price , and the new equilibrium quantity. A) increases; increases B) increases; decreases C) increases; may increase or decrease D) decreases; increases E) decreases; decreases F) decreases; may increase or decrease 9) Imagine there is originally an equilibrium and call it the "old" equilibrium. Suppose that the government sends a check of $1,200 to every US citizen. Assume that supply is fixed for this question. Car is a normal good. Compared to the "old" equilibrium, the new equilibrium price , and the new equilibrium quantity. A) increases; increases B) increases; decreases C) increases; may increase or decrease D) decreases; increases E) decreases; decreases F) decreases; may increase or decrease

Answer rating: 100% (QA)

One need to understand the impact of the government sending checks ... View the full answer