If Demand for a Product Falls at the Same Time

question 64

Multiple Choice

If demand for a product falls at the same time supply rises,which of the following might we expect?

• A)Equilibrium price and quantity sold would fall.
• B)Equilibrium price would fall,and equilibrium quantity could either rise or fall.
• C)Both the equilibrium price and the equilibrium quantity could rise or fall.
• D)Equilibrium price would rise,and the equilibrium quantity could rise or fall.

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Definitions:

SEC

Securities and Exchange Commission, a U.S. federal agency responsible for enforcing federal securities laws and regulating the securities industry and stock markets.

Prospectus Approval

The process of getting approval from regulatory authorities for a document offering securities or financial instruments for sale, detailing terms and conditions.

Investment Bank

An organization that assists companies in issuing securities and selling them to investors.

Market

A place or mechanism where buyers and sellers can trade goods, services, securities, or other items of value.