If the Demand for Coffee Makers Increases

question 265

Multiple Choice

If the demand for coffee makers increases,

• A) the quantity demanded will decrease.
• B) equilibrium price will increase and equilibrium quantity will decrease.
• C) equilibrium price will decrease and equilibrium quantity will increase.
• D) quantity supplied will increase.
• E) quantity supplied will decrease.

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Definitions:

Utility

A measure of satisfaction or happiness that consumers receive from consuming goods and services.

Prisoner's Dilemma

A fundamental problem in game theory demonstrating that two people might not cooperate even if it is in both their best interests to do so.

Nash Equilibrium

An idea in game theory where a player cannot benefit by altering their strategy alone while the strategies of other players stay the same.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies if the other players keep theirs unchanged.