If the Supply of a Product Decreases and Demand Increases

question 122

True/False

If the supply of a product decreases and demand increases, the equilibrium price and quantity will increase.

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Definitions:

Partnership

A legal arrangement where two or more individuals engage in business together, sharing profits, liabilities, and decision-making.

Close Corporations

Businesses characterized by a small number of shareholders, no public shares, and often more relaxed corporate governance standards.

Flexibility

The quality of being adaptable or variable in order to accommodate different circumstances or needs.

Rules of Operation

refer to established procedures or guidelines that govern the functioning or conduct of an organization, system, or process.