A decrease in supply and a decrease in demand will lead the equilibrium price to ________________ and the equilibrium quantity to ________________.

Critical Thinking (Must contain 2+ sentences for full credit)   We know that a change in the price of a product causes a movement along the demand curve. Suppose consumers believe that prices will be rising in the future. How will that affect demand for the product in the present? How would you show this graphically?

In an oligopoly, there will be a strong incentive for firms to collude. 

Suppose you drive into a new town and see a gas station with a price per gallon of $3. As you continue driving around the town, you observe that every gas station you see has a price within a few cents of $3. Which of the following is the best explanation for why you would be observing this? 

The monopolistically competitive firm has no supply curve. 

The prisoner’s dilemma is a useful tool for illustrating that cooperation can be difficult to achieve. This failure to cooperate is always bad for society.

Collusion between firms is unlikely. 

When a new firm enters a monopolistically competitive market, the residual demand curves faced by all the other firms in the market will 

Consider the following monopolistically competitive firm.  Which area would represent the consumer surplus that goes to the consumers who buy from this firm? 

Trending of quality control on a blood gas analyzer is as presented. What has occurred?