If Demand Increases and Supply Decreases, What Is the Effect

question 486

Multiple Choice

If demand increases and supply decreases, what is the effect on equilibrium price and equilibrium quantity?

• A) The quantity increases and the price might rise, fall, or remain the same.
• B) The price rises and the quantity might increase, decrease or remain the same.
• C) The price falls and the quantity might increase, decrease, or remain the same.
• D) The quantity decreases and the price might rise, fall, or remain the same.

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Definitions:

ACE Model

A conceptual framework focusing on Awareness, Commitment, and Execution, used in various contexts to improve performance and outcomes.

Effectiveness

The degree to which objectives are achieved, reflecting the capability of producing a desired result.

Appropriateness

The quality of being suitable or proper in a given context or situation.

Appropriateness

The quality of being suitable or proper in a given situation or context.