If We Observe a Fall in the Equilibrium Price of Good

question 14

Multiple Choice

If we observe a fall in the equilibrium price of good A,we know that either the demand for A has

• A)increased or the supply of A has decreased or both.
• B)increased or the supply of A has increased or both.
• C)decreased or the supply of A has increased or both.
• D)decreased or the supply of A has decreased or both.
• E)none of the above.

---

Definitions:

Primacy Effect

The tendency to remember information that is presented first better than information that is presented later.

Schema

A cognitive framework or concept that helps organize and interpret information, allowing individuals to categorize and understand new information based on existing knowledge.

Concept

An abstract idea or general notion that represents something in the mind, forming the basis of thoughts or theories.

Distinctiveness

The quality or condition of being unique and different from other entities in identifiable ways.