Which of the Following Statements Is Correct for a Market

question 26

Multiple Choice

Which of the following statements is correct for a market with an upward-sloping supply curve and a downward-sloping demand curve?

• A)If the supply curve shifts left and demand remains constant,equilibrium quantity will rise.
• B)If the supply curve shifts right and the demand curve remains constant,equilibrium price will rise.
• C)If the demand curve shifts left and the supply curve shifts right,equilibrium price will rise.
• D)If the demand curve shifts right and the supply curve shifts left,equilibrium price will rise.
• E)If the demand curve shifts left and the supply curve shifts left,equilibrium quantity will rise.

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Definitions:

Agreed Upon Quantity

This is the quantity of goods that the buyer and seller have mutually agreed upon for a transaction.

Expiration Date

The specific day on which an option contract or other derivative expires and can no longer be exercised.

Payoff Profile

A graphical representation that shows the potential profit or loss of an option at various prices of the underlying asset.

Price Changes

Variations in the price level of goods and services over time, affecting purchasing power and inflation rates.