If Both the Demand and Supply Increase, the Equilibrium Quantity

question 101

Multiple Choice

If both the demand and supply increase, the equilibrium quantity ________ and the equilibrium price ________.

• A)decreases; might rise, fall or not change
• B)increases; falls
• C)decreases; rises
• D)increases; might rise, fall or not change

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Definitions:

Pension Benefits

Financial payments made to individuals after retirement, based on their previous employment’s duration and earnings.

Fair Labor Standards Act

A US federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers.

Minimum Wage

The lowest legal hourly pay for workers, as mandated by government regulation, intended to ensure a basic standard of living for employees.

Overtime

Refers to hours worked above the normal 40-hour workweek, for which there is usually a pay premium.