If Demand Increases and Supply Decreases, What Is the Effect

question 66

Multiple Choice

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

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

Self-defeating Behavior

Actions or attitudes that undermine one's own success or well-being.

Choleric Personality

A temperament characterized by energy, passion, and ambition, often leading to assertiveness and competitiveness.

Warmth

A personality trait that reflects friendliness, empathy, and kindness towards others.

Cheerfulness

A state of being noticeably happy and optimistic.