Assuming Supply Is Held Constant, an Increase in Demand for a Product

question 218

True/False

Assuming supply is held constant, an increase in demand for a product will cause an increase in the equilibrium price and the amount bought and sold.

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Definitions:

Trade Deficits

A situation in which a country's imports of goods and services exceed its exports, leading to a net outflow of domestic currency to foreign markets.

Industrially Advanced

Refers to countries or regions that have highly developed industries, technology, and infrastructure, contributing to a strong economy.

Comparative Advantage

A person's, corporation's, or country's capability to offer a good or service more efficiently, incurring less opportunity cost than their competitors.

International Trade

The exchange of goods and services between countries, allowing countries to expand their markets and pursue higher efficiency through specialization.