An Increase in Demand and a Decrease in Supply Cause

question 183

Multiple Choice

An increase in demand and a decrease in supply cause which of the following?

• A) Equilibrium price change is indeterminate.
• B) Equilibrium quantity decreases.
• C) Equilibrium price falls.
• D) Equilibrium price rises.
• E) Equilibrium quantity increases.

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Definitions:

Colombia

A country located in the northern part of South America, known for its significant biodiversity, cultural heritage, and as a major producer of coffee and emeralds.

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A country in South America known for its diverse culture, large rainforests, and significant contributions to global agriculture and soccer.

Hot Dogs

A cooked sausage, traditionally grilled or steamed, served in a sliced bun as a common American street food.

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The purchase of foreign oil by a country to meet its energy needs not covered by domestic production.