If Demand Decreases and Supply Increases,then the

question 98

Multiple Choice

If demand decreases and supply increases,then the

• A)equilibrium quantity increases but the effect on the equilibrium price is unknown.
• B)equilibrium quantity decreases but the effect on the equilibrium price is unknown.
• C)equilibrium price falls but the effect on equilibrium quantity is unknown.
• D)equilibrium price rises but the effect on equilibrium quantity is unknown.
• E)effect on both equilibrium price and quantity is unknown.

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Definitions:

Comparative Advantage

The skill of an individual, enterprise, or nation in producing a commodity or performing a service with a lower sacrifice of alternative opportunities than competing entities.

Oranges

A citrus fruit that is often considered in economic examples related to trade, comparative advantage, and consumer choice.

Peaches

A type of fruit with a characteristic fuzzy skin and sweet flesh, commonly eaten fresh or used in cooking and baking.

Human Capital

The improvement in labor created by education and knowledge that is embodied in the workforce.