If the Supply of a Product Decreases,then We Would Expect

question 10

Multiple Choice

If the supply of a product decreases,then we would expect equilibrium price

• A)to increase and equilibrium quantity to decrease.
• B)to decrease and equilibrium quantity to increase.
• C)and equilibrium quantity to both increase.
• D)and equilibrium quantity to both decrease.

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Definitions:

Financialization

The process by which financial services and institutions increase in size and influence in an economy, affecting economic policy and management.

Private Equity Funds

Investment funds that acquire or invest in private companies, often with the aim of restructuring and selling them at a profit.

Infrastructure

The fundamental physical and organizational structures and facilities (e.g., buildings, roads, power supplies) needed for the operation of a society or enterprise.

Financial Markets

Platforms where buyers and sellers trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices reflective of supply and demand.