Assume That Supply Increases Greatly and Demand Increases Slightly

question 392

Multiple Choice

Assume that supply increases greatly and demand increases slightly. Which of the following will happen?

• A) Equilibrium price will fall and equilibrium quantity will rise.
• B) Equilibrium price will rise and equilibrium quantity will fall.
• C) Equilibrium price will rise and equilibrium quantity will rise.
• D) Equilibrium price will fall and equilibrium quantity will fall.
• E) Neither equilibrium price nor equilibrium quantity will change.

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Definitions:

Psychiatric Disorders

Psychological disorders that involve changes in cognition, emotional state, or behaviour patterns, leading to discomfort or difficulty in daily life.

Unpleasant Situations

Circumstances or events that are difficult, uncomfortable, or distressing to experience or tolerate.

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A wide range of mental health conditions that affect mood, thinking, and behavior.

Psychological Disorder

A pattern of behavior or thought that causes significant distress or impairment in personal functioning, recognized by the mental health community.