A Competitive Market Is in Equilibrium

question 125

Multiple Choice

A competitive market is in equilibrium. Then there is a decrease in demand and a decrease in supply. The equilibrium price ________, and the equilibrium quantity ________.

• A) rises; decreases
• B) perhaps changes but we can't say if it rises, falls or stays the same; decreases
• C) falls; increases
• D) rises; increases
• E) perhaps changes but we can't say if it rises, falls or stays the same; increases

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Definitions:

Cane

A stick used as an aid in walking or as a support, typically for those with impaired mobility.

Learning Objectives

Specific goals that define the desired outcomes of a learning process or educational activity, outlining what learners should know or be able to do afterwards.

Interpersonal Communication

The process of exchange of information, feelings, and meaning between two or more people through verbal and/or non-verbal methods.

Positive Reinforcement

A psychological strategy involving the presentation of a rewarding stimulus following a desired behavior to increase the likelihood of its recurrence.