With Respect to the Market Clearing Price and the Equilibrium

question 40

Multiple Choice

With respect to the market clearing price and the equilibrium quantity for good X, an increase in the demand for and a decrease in supply of the good definitely will

• A) increase the market clearing price and the equilibrium quantity of good X.
• B) decrease the market clearing price and the equilibrium quantity of good X.
• C) increase the market clearing price of good X but lower the equilibrium quantity of X.
• D) increase the market clearing price of good X but have an uncertain impact on the equilibrium quantity of X.

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Definitions:

Orderliness

The quality of being methodically organized and systematic in arrangement or function.

Information Gaps

Situations where a disparity or lack of necessary information exists, making it difficult to make informed decisions or understandings.

Opportunity-driven

Pursuing actions based on perceived potential for growth or benefit.

Timmons Model

A model of entrepreneurship that emphasizes the dynamic balance between opportunity, resources, and team, as the three critical factors in successful venture creation.