Suppose a Market Is in Equilibrium

question 9

Multiple Choice

Suppose a market is in equilibrium. If the price of a substitute for the good decreases, which of the following would occur?

• A)P increases and Q decreases
• B)P decreases and Q increases
• C)P decreases and Q decreases
• D)P increases and Q increases

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Definitions:

Wealthiest People

Individuals with the highest net worth in the world, often derived from their ownership in profitable businesses, investments, and assets.

Rich Parents

Colloquially refers to individuals whose parents possess substantial wealth, potentially affecting their economic opportunities.

Lowest Quintile

Refers to the bottom 20% of a population sorted by income or wealth.

Total Income

The sum of all wages, salaries, profits, interest payments, rents, and other forms of earnings received by individuals or businesses in a given period.