If We Observe an Increase in the Equilibrium Quantity of Good

question 75

Multiple Choice

If we observe an increase in the equilibrium quantity of good A,we know that

• A)either the demand for A has increased or the supply of A has decreased or both.
• B)either the demand for A has increased or the supply of A has increased or both.
• C)either the demand for A has decreased or the supply of A has increased or both.
• D)either the demand for A has decreased or the supply of A has decreased or both.
• E)the price of A has risen.

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Definitions:

Common-Information Bias

The inclination to overemphasize information held by the majority of group members while failing to consider other perspectives held by the minority.

Exploratory Innovation

Innovation focused on investigating and experimenting with new ideas or technologies without a predetermined application.

Radical Thinking

A form of thought that challenges traditional ideas and seeks profound systemic changes, often leading to innovative solutions.

Programmed Decisions

Decisions that are routine and repetitive, often made through established processes or policies.