Consider the Market for a Good That Is in Equilibrium

question 58

Multiple Choice

Consider the market for a good that is in equilibrium.Which of these is most likely to occur if both demand and supply for this good decrease during a particular point in time?

• A)The equilibrium price will increase.
• B)The equilibrium price will decrease.
• C)The equilibrium quantity will increase.
• D)The equilibrium quantity will decrease.
• E)Both equilibrium price and quantity will increase.

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Definitions:

Majority Voting

A decision-making process where the choice supported by more than half of the participants wins.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be consumed by one individual without preventing the consumption by others.

Paired-Choice Majority Voting

A decision-making process in which choices are presented in pairs and voted on, with the majority preference determining the winner in each pair.

Special-Interest Effect

The impact of interest groups on politics and policy making, where small groups achieve benefits at the expense of the larger population.