Consider a Market That Is in Equilibrium

question 3

Multiple Choice

Consider a market that is in equilibrium. If the market experiences a decrease in supply:

• A) the equilibrium price and quantity will rise.
• B) the equilibrium price will rise and the equilibrium quantity will fall.
• C) the equilibrium price and quantity will fall.
• D) the equilibrium price will fall and the equilibrium quantity will rise.

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Definitions:

Narrative

A spoken or written account of connected events; a story.

Apologies

Expressions of regret or sorrow for having caused inconvenience, harm, or insult, often intended to repair social relations and convey remorse.

Acknowledgement

Recognition or acceptance of the truth or existence of something, often showing appreciation or confirmation.

Responsibility

A duty or obligation to satisfactorily perform or complete a task that one has accepted, or which is imposed by law, duty, or contractual agreement.