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:

Unilateral Mistake

Occurs when one party to a contract is mistaken about a basic assumption on which they made the contract, and the other party either knows or has reason to know of the mistake.

Standard-Size

Refers to products or items that are made to adhere to specific, established dimensions or norms commonly accepted in their category.

Rescinded Contract

A contract that has been declared void by one or both parties, returning them to the position they were in before the contract was made.

Concealment

The act of withholding material information that one is legally or morally bound to disclose, especially in contracts or insurance.