If the Demand for a Product Rises and the Supply

question 156

Multiple Choice

If the demand for a product rises and the supply stays the same

• A) the market clearing price will fall and the equilibrium quantity will rise.
• B) the market clearing price will rise and the equilibrium quantity will fall.
• C) both the market clearing price and the equilibrium quantity will fall.
• D) both the market clearing price and the equilibrium quantity will rise.

Understand the definitions and distinctions between interest groups, political parties, and social movements.

Recognize and describe various techniques employed by interest groups to influence government decisions, including the roles of lobbyists.

Identify the historical context and evolution of laws regulating lobbying and interest group activities.

Analyze the importance and implications of political endorsements by interest groups.

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Definitions:

Equilibrium Outcome

The state in which market supply and demand balance each other, and as a result, prices become stable.

Pure Strategies

A strategy in game theory in which a player makes a specific choice or takes a specific action with certainty.

Sponsor

An individual or organization that provides funds for a project or activity carried out by another, in exchange for advertising or promotion.

Nash Equilibrium

A concept in game theory where no player can benefit by changing their strategy while the other players keep theirs unchanged, representing a state of optimal strategy among all participants.