Suppose That the Number of Buyers in a Market Decreases

question 216

Multiple Choice

Suppose that the number of buyers in a market decreases and a technological advancement occurs. What would we expect to happen in the market?

• A) The equilibrium price would increase, but the impact on the amount sold in the market would be ambiguous.
• B) The equilibrium price would decrease, but the impact on the amount sold in the market would be ambiguous.
• C) Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
• D) Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.

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Definitions:

Reciprocal Innervation

The coordination of muscle groups achieved through the activation of one muscle and the simultaneous inhibition of its antagonist.

Obturator Nerve

A nerve in the pelvic region that innervates the adductor muscles of the thigh.

Adduct Thigh

To adduct the thigh means to move the thigh inward towards the median axis of the body, a movement controlled by adductor muscles.

Iliopsoas

A compound muscle composed of the iliacus and psoas major muscles, crucial for flexing the hip.