If Supply of a Good Increases and at the Same

question 201

Multiple Choice

If supply of a good increases and at the same time demand for that good decreases, equilibrium price

• A) decreases and equilibrium quantity is indeterminate.
• B) increases and equilibrium quantity decreases.
• C) is indeterminate and equilibrium quantity increases.
• D) is indeterminate and equilibrium quantity decreases.

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Definitions:

Decay

A hypothesized process of forgetting in which material is thought to erode, break apart, or otherwise disintegrate or fade.

Echoic Memory

A type of sensory memory that retains audio information for a short period after the original sound has ceased.

Iconic Memory

A component of the visual memory system which includes a very brief (<1 second), pre-categorical, high-capacity memory store.

Sensory Memory

The shortest-term element of memory that acts as a buffer for stimuli received through the senses.