Suppose the Demand for Furniture Remains Constant

question 15

Multiple Choice

Suppose the demand for furniture remains constant. If there is a decrease in the cost of wood used to make furniture, _____.

• A) the equilibrium price of furniture will increase while the equilibrium quantity will decrease
• B) the equilibrium price of furniture will fall while the equilibrium quantity will increase
• C) the equilibrium price and quantity of furniture will fall
• D) the equilibrium price and quantity of furniture will increase

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation and have potential voting rights and the possibility of dividends.

Stakeholders

Individuals or groups that have an interest, financial or otherwise, in the performance and actions of an organization or project.

Bandwagon Fallacy

The misleading argument that something is true, good, or desired because many other people believe in it or do it.

Argumentum Ad Baculum

A logical fallacy in which an argument is made through appeal to force or threat instead of reason.