As a Result of an Increase in the Supply of a Good

question 117

Multiple Choice

As a result of an increase in the supply of a good, the equilibrium quantity ________ and the equilibrium price ________.

• A) increases; falls
• B) increases; rises
• C) decreases; falls
• D) decreases; rises

---

Definitions:

Contaminated Products

Items that have been tainted with substances that are harmful or undesired, affecting the product's safety and quality.

Quality Loss Function

A mathematical formula developed by Genichi Taguchi to measure the cost of deviating from target values, emphasizing minimizing variability and losses associated with poor quality.

Specification Limits

The range of permissible or acceptable values set based on customer requirements or industry standards that products or processes should meet.

PDCA

A continuous improvement model that involves four stages.