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:

Expected Personal Loss

The anticipation of losing something of personal value, which could be a loved one, personal health, job, or financial security, often leading to emotional distress.

Element of Shock

A sudden and unforeseen event that significantly alters perceptions or circumstances.

Lewin Change Model

A workplace change model with three steps; unfreezing the status quo, making changes, then refreezing to the previous work mode.

Holmes-Rahe Readjustment Scale

A tool used to measure the stress level of individuals by assigning points for various life events that might require personal adjustment.