If the Supply Curve and the Demand Curve for Lettuce

question 3

Multiple Choice

If the supply curve and the demand curve for lettuce both shift to the left by an equal amount,what can we say about the resulting changes in equilibrium price and quantity?

• A) The price will increase,but the quantity may increase or decrease.
• B) The price will increase,and the quantity will increase.
• C) The price will decrease,and the quantity will increase.
• D) The price will stay the same,but the quantity will increase.
• E) The price will stay the same,but the quantity will decrease.

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Definitions:

Uncertain Environment

An environment that lacks so much information that it is difficult to assign probabilities to the likely outcomes of alternatives.

Probabilities

The measure of the likelihood that an event will occur, often expressed as a number between 0 and 1.

Nonprogrammed Decision

A decision made in response to situations that are unique, relatively unstructured, and undefined, often requiring creative problem-solving.

New Market

Refers to either a completely unexplored market sector or geographic area where a product, service, or business can expand.