When Supply Decreases and Demand Does Not Change, the Equilibrium

question 107

Multiple Choice

When supply decreases and demand does not change, the equilibrium quantity _______ and the equilibrium price _______.

• A) increases; falls
• B) decreases; falls
• C) increases; rises
• D) decreases; rises

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Definitions:

Ozone

A molecule composed of three oxygen atoms, known for its role in absorbing ultraviolet solar radiation in the stratosphere, thus protecting the earth from harmful UV rays.

Climate Models

Computational or mathematical simulations that project the Earth's future climate conditions based on various atmospheric and oceanic variables.

Correspondence

The act of exchanging letters or the process of communication between parties via written documents or emails.

Assumptions

Premises or beliefs taken as true without empirical evidence, often serving as foundational concepts in theoretical models or experiments.