Suppose That Initially, the Equations for Demand and Supply Are

question 8

Multiple Choice

Suppose that initially, the equations for demand and supply are Qd = 48 − 4P and Qs = 4P − 16, respectively. If the quantity supplied decreases by 4 at every price (so that the supply curve shifts to the left) , the equilibrium price will change from:

• A) $8 to $7.50.
• B) $8 to $8.50.
• C) $8.50 to $7.50.
• D) $7.50 to $8.50.

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Definitions:

Open System

An open system is a system that continuously interacts with its environment, exchanging information, matter, and energy.

Theory X

A management concept that assumes employees are naturally unmotivated and dislike work, needing constant supervision and control.

Resource Inputs

The materials, labor, information, and other assets used to produce goods or services in a system or process.

Contingency Thinking

An approach that emphasizes the need to tailor decisions and actions to the specifics of a situation rather than relying on one-size-fits-all solutions.