A Competitive Market Is in Equilibrium

question 47

Multiple Choice

A competitive market is in equilibrium. Then there is a decrease in demand and a decrease in_{--------------------} supply. The equilibrium price , and the equilibrium quantity_{--------------------} .

• A)perhaps changes but we can't say if it rises, falls, or stays the same; decreases
• B)perhaps changes but we can't say if it rises, falls, or stays the same; increases
• C)falls; increases
• D)rises; increases
• E)rises; decreases

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Definitions:

Drug-Related Crimes

Illegal activities connected to the possession, distribution, manufacture, or use of controlled substances as defined by law.

Agricultural Output

The total amount of agricultural products, including crops and livestock, produced within a specific time frame.

Technological Improvements

Technological improvements involve the application of better solutions that meet new requirements or existing market needs, often leading to increased efficiency and productivity.

Demand Inelastic

A situation where the quantity demanded of a good or service changes minimally in response to price changes.