Consider a Market That Is in Equilibrium

question 86

Multiple Choice

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

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

Learn about express versus implied deceptive advertising and the legal implications of each.

Understand the elements required to establish negligence in tort law.

Grasp the concept of performance-based regulation and its application.

Identify and explain the criteria for product defects under strict product liability.

---

Definitions:

Exchange

A marketplace where securities, commodities, derivatives, and other financial instruments are traded.

Future

In finance, a future is a standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, often used as a financial instrument for hedging or speculation.

Swap Contract

A swap contract is an agreement between two parties to exchange financial instruments or cash flows at a future date based on specified terms.

Specified Cash Flows

Specified Cash Flows refers to particular amounts of money that are expected to be received or paid out at defined times during the life of a financial instrument or investment.