Under What Circumstances Will an Increase in Supply Have No

question 114

Multiple Choice

Under what circumstances will an increase in supply have no effect on the quantity traded of a product.

• A) If the demand increases by the same amount.
• B) Graphically, if the demand curve is vertical.
• C) Graphically, if the demand curve is horizontal.
• D) Graphically, if the supply curve is downward-sloping.

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Definitions:

Federal Reserve District Bank

A regional bank of the Federal Reserve System, overseeing banks within a specific district and participating in monetary policy to help regulate the economy.

Duluth

A port city in the U.S. state of Minnesota, known for its shipping, cultural activities, and as a gateway to Lake Superior.

Minneapolis

A major city in Minnesota, United States, known for its parks and lakes, as well as being a cultural and economic hub.

Central Bank

The main financial institution of a country, which regulates the money supply and interest rates and oversees the banking system.