Using the Supply-Demand Graph, What Happens as the Price of Goods

question 12

Multiple Choice

Using the supply-demand graph, what happens as the price of goods or services increases?

• A) The quantity of the goods or services decreases
• B) The quantity of the goods or services increases
• C) Demand increases and supply falls
• D) Demand falls and supply increases
• E) Market equilibrium is finally reached and the demand increases

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Definitions:

Control Over Lives

The extent to which individuals perceive they have power or influence over the events and circumstances in their life.

Self-Deception Strategy

A psychological mechanism wherein an individual convinces themselves of a truth or reality that may not be accurate, often to protect their ego.

Self-Serving Bias

The common human tendency to attribute positive events to one's own character but attribute negative events to external factors.

Self-Deception Strategies

Mental tricks people use to help them believe things that are false.