If the Price of a CD Is Equal to the Equilibrium

question 22

Multiple Choice

If the price of a CD is equal to the equilibrium price, there will be ________ of CDs and the price will ________.

• A)a surplus; rise
• B)neither a shortage nor a surplus; not change
• C)a surplus; fall
• D)a shortage; fall

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Definitions:

False Dichotomy

A logical fallacy that presents two opposing options as the only possibilities, when in fact more options exist.

Weak Analogy

An argument based on insufficient parallels between two or more entities, which may lead to faulty conclusions.

Circular Argument

A logical fallacy in which the conclusion is supported by premises that assume the truth of the conclusion instead of providing evidence for it.

Hedonic Adaptation

The observed process of people returning to a set level of happiness despite major positive or negative events or life changes.