If Both the Demand for a Product and the Supply

question 35

Multiple Choice

If both the demand for a product and the supply of it increase, then the equilibrium quantity will ________ and the equilibrium price will ________.

• A) decrease; increase
• B) decrease; decrease
• C) decrease; remain constant
• D) increase; either increase, decrease, or remain constant

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Definitions:

Chester I. Barnard

An American business executive and author known for his contributions to management theory, especially in the area of organizational and leadership studies.

College Professor

An educator and scholar at a college or university who teaches and engages in research.

Economic Man

A theoretical concept in economics that depicts an individual as a rational and self-interested agent, making decisions to maximize their utility.

Frederick W. Taylor

An American engineer and management consultant who is known as the father of scientific management, focusing on efficiency and labor productivity.