If Both the Supply of and the Demand for a Good

question 206

Multiple Choice

If both the supply of and the demand for a good decrease simultaneously, but the decrease in demand is greater than the decrease in supply, then the equilibrium price _____ and equilibrium output _____.

• A) falls; falls
• B) may rise, fall, or stay the same; falls
• C) may rise, fall, or stay the same; rises
• D) falls; may rise, fall, or stay the same

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Definitions:

Bilateral Contract

An agreement where each of the two parties makes a promise or set of promises to the other.

Unilateral Contract

A contract in which one party makes a promise in exchange for an act by another party, who accepts the offer by performing the requested act.

Intellectual Property

A category of property that includes intangible creations of the human intellect, such as patents, copyrights, trademarks, and trade secrets.

Patent

A government-granted exclusive right to an inventor for a limited period, protecting their invention from unauthorized use, reproduction, or sale.