Consider a Market That Is in Equilibrium

question 81

Multiple Choice

Consider a market that is in equilibrium. If the market experiences both an increase in demand and a decrease in supply:

• A) the equilibrium price and quantity will rise.
• B) the equilibrium quantity will rise, but the change in the equilibrium price cannot be predicted.
• C) the equilibrium price will rise, but the change in the equilibrium quantity cannot be predicted.
• D) the equilibrium price and quantity will fall.

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Definitions:

Closed-Loop MRP

A materials requirement planning system that incorporates feedback to continuously update and improve the planning process based on actual performance.

Bill of Material

A comprehensive list that outlines all the raw materials, components, and assemblies needed to manufacture a product.

Product A

A generic term used to reference a specific item or entity produced by a business or organization.