Suppose That the Equilibrium Price of French Fries Rises,while the Equilibrium

question 42

Multiple Choice

Suppose that the equilibrium price of French fries rises,while the equilibrium quantity falls.The most consistent explanation for these observations is

• A) a decrease in the demand for French fries with no change in supply.
• B) an increase in the demand for French fries with no change in supply.
• C) an increase in the supply of French fries and an increase in the demand for French fries.
• D) a decrease in the supply of French fries with no change in demand.
• E) an increase in the supply of French fries with no change in demand.

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Definitions:

Lumber

Wood that has been converted into planks and beams, which is part of the sequence of processes involved in the production of wood.

Equilibrium Price

The cost at which the amount of a product consumers want to buy is equal to the amount producers are willing to sell.

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Newly constructed residential buildings intended for occupancy.

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Electronic devices that play Blu-ray discs, which are used for storing and viewing high-definition video and digital data.