If Supply Increases and Demand Decreases

question 247

Multiple Choice

If supply increases and demand decreases

• A) the market clearing price definitely rises, and the equilibrium quantity definitely falls.
• B) the market clearing price definitely rises, and the effect on the equilibrium quantity is indeterminate.
• C) the market clearing price definitely falls, and the effect on the equilibrium quantity is indeterminate.
• D) the effect on the market clearing price is indeterminate, and the equilibrium quantity definitely falls.

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Definitions:

Iroquois Confederacy

A powerful and influential union of six Native American nations primarily located in what is now the northeastern United States and southeastern Canada, known for their sophisticated political system and role in trade and conflicts.

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Pertaining to the United Kingdom or its people, culture, and history.

Diplomatic Isolation

A foreign policy strategy where a country is intentionally excluded from international diplomacy and negotiations by other countries, often to express disapproval of its policies or actions.

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