Suppose You Observe That the Price of a Good Increases

question 205

Multiple Choice

Suppose you observe that the price of a good increases and that the quantity of this good sold also increases. If only the demand curve or the supply curve shifts this suggests that

• A) supply increased over time while demand remained the same.
• B) supply decreased over time while demand remained the same.
• C) demand increased over time while supply remained the same.
• D) demand decreased over time while supply remained the same.

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Definitions:

Intrinsic Motivation

The drive to engage in activities for their own sake, out of interest or enjoyment, rather than for external rewards or pressures.

Cooperation

The action of working together toward a common goal or benefit.

Control Bias

A tendency to overestimate one's ability to control events or outcomes, often leading to unrealistic expectations.

Cognitive Tasks

Mental activities that require thinking, problem-solving, decision-making, or memory.