When Supply and Demand for a Product Decrease Simultaneously, We

question 43

Multiple Choice

When supply and demand for a product decrease simultaneously, we

• A) can predict that both equilibrium price and quantity will increase.
• B) can predict that both equilibrium price and quantity will decrease.
• C) cannot predict equilibrium price, but know that equilibrium quantity will decrease.
• D) cannot predict the change in either the equilibrium quantity or equilibrium price.

---

Definitions:

Life Insurance Premiums

Life Insurance Premiums are the amounts paid to an insurance provider in exchange for life insurance coverage, providing financial protection or benefits to beneficiaries upon the insurer's death.

Support

Assistance or help provided by an individual or system to address a need or solve a problem.

Dependency Exemption

A tax exemption for a taxpayer who supports another generally based on kinship, amount of support, and income levels (Note: Under tax law changes, this may not apply for certain tax years).

Qualifying Relative's Support

Expenses that contribute to more than half of a qualifying relative's total support for the year, impacting eligibility for certain tax benefits.