You Are Asked to Determine, Other Things Equal, the Effects

question 197

Multiple Choice

You are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product Xupon (1) the demand (D) for, or supply (S) of, X, (2) the equilibrium price (P) of X and (3) the equilibrium quantity (Q) of X.Refer to the above.An increase in income, if X is a normal good, will:

• A)increase D, increase P, and increase Q.
• B)increase D, increase P, and decrease Q.
• C)increase S, increase P, and increase Q.
• D)decrease D, increase P, and increase Q.

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Definitions:

Efficiency

The ability to achieve a goal using the least possible amount of resources, such as time, money, and effort.

Process Reengineering

The essential overhaul and significant transformation of business operations to attain substantial enhancements in vital performance indicators.

Systems Bottlenecks

Points of congestion in a system where the flow of data is impaired or stopped entirely, often leading to delays and inefficiency.

Duplication

The act of copying or replicating something, which can result in unnecessary redundancy or repetition.