Which of the Following Always Raises the Equilibrium Price

question 237

Multiple Choice

Which of the following always raises the equilibrium price?

• A) an increase in both demand and supply
• B) a decrease in both demand and supply
• C) an increase in demand combined with a decrease in supply
• D) a decrease in demand combined with an increase in supply

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Definitions:

Consumer Sales Promotions

Marketing tactics aimed at the consumer to stimulate immediate sales, such as discounts, coupons, and contests.

Trade Sales Promotions

Marketing activities designed to stimulate demand and sales of a product among retailers and distributors.

Markup

The difference between the cost of a product or service and its selling price, expressed as a percentage of the cost, used to cover expenses and generate profit.

FOB Shipping Point Pricing

A term in shipping where the buyer is responsible for the goods once they leave the seller’s premises, including paying for shipping and handling.