Suppose That Both the Supply of Beer and the Demand

question 51

Multiple Choice

Suppose that both the supply of beer and the demand for beer decrease.One can predict that the

• A) equilibrium price will rise but the equilibrium quantity can increase or decrease.
• B) equilibrium price and quantity will decrease.
• C) equilibrium price and quantity will rise.
• D) equilibrium quantity will fall but the equilibrium price can rise or fall.
• E) change in price and quantity are both unknown.

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Definitions:

Expectancy Model

A psychological theory suggesting that people are motivated to act in certain ways based on their expectations of the outcome and the value they place on that outcome.

Perceived Relationship

The subjective interpretation or understanding an individual has of their relationship with others, which may not align with reality.

Effort

The use of physical or mental energy to achieve a task, goal, or outcome, often measured by the level of hard work or intensity applied.

Pay

Compensation received by an employee for their work, including wages, salaries, and bonuses.