In Which of the Following Situations Will Both Market Clearing

question 395

Multiple Choice

In which of the following situations will both market clearing price and the equilibrium quantity increase?

• A) an increase in demand with no change in supply
• B) an increase in supply with no change in demand
• C) a decrease in supply with no change in demand
• D) a decrease in demand with no change in supply

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Definitions:

Unrealistically Optimistic

The tendency to hold an overly positive outlook on one's abilities or future outcomes, beyond what is statistically likely or rational.

Self-Serving Bias

Self-serving bias is a cognitive bias that leads individuals to attribute their successes to internal characteristics and failures to external factors.

Downward Comparison

The act of comparing oneself to others who are worse off in order to feel better about one's own situation.

Upward Comparison

Comparing oneself to others who are better off or more successful, which can influence self-esteem and motivation.