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An Increase in Demand Causes the Equilibrium Price to _____

question 233

Multiple Choice

An increase in demand causes the equilibrium price to _____ and the equilibrium quantity to _____.


Definitions:

WARP

The Weak Axiom of Revealed Preference (WARP) is a criterion used to check for consistency in consumer choice behavior under the assumption of rationality.

Bundle

A set of goods or services sold together as a single package.

Revealed Preferences

An economic theory that determines consumer preferences by observing their purchasing behavior rather than through direct inquiry.

Francs

A currency unit formerly used in France and some other countries, and still used in some territories.

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