For a Given Downward-Sloping Demand Curve,a Decrease in Supply Will

question 136

Multiple Choice

For a given downward-sloping demand curve,a decrease in supply will cause a(n) :

• A)increase in demand.
• B)increase in equilibrium quantity.
• C)increase in quantity demanded.
• D)decrease in quantity demanded.
• E)decrease in equilibrium price.

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Definitions:

Induce

To lead or move by persuasion or influence, often to bring about or provoke a specific action or outcome.

Government Securities

Government securities are financial instruments issued by the government to finance its expenditures, offering a fixed return and including treasures, bonds, and bills.

Time Deposits

Money deposited in a financial institution that cannot be withdrawn for a certain term or period of time without incurring penalties.

Large Banks

Financial institutions with a significant amount of total assets, offering a wide range of financial services.