As a Result of an Increase in the Supply of a Good

question 117

Multiple Choice

As a result of an increase in the supply of a good, the equilibrium quantity ________ and the equilibrium price ________.

• A) increases; falls
• B) increases; rises
• C) decreases; falls
• D) decreases; rises

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Definitions:

Social Allergy Effect

A psychological phenomenon where repeated exposure to irritating behaviors in close relationships leads to increasing annoyance.

Bad Apple Effect

The notion that one wrong person can corrupt a group, leading to overall negative behaviors.

Propinquity Effect

The tendency for people to form friendships or romantic relationships with those whom they encounter often.

Reinforcement Theory

A concept in behavioral psychology where the probability of a behavior occurring is increased by following it with rewards (positive reinforcement) or the removal of negative stimuli (negative reinforcement).