If Both the Demand for a Product and the Supply

question 35

Multiple Choice

If both the demand for a product and the supply of it increase, then the equilibrium quantity will ________ and the equilibrium price will ________.

• A) decrease; increase
• B) decrease; decrease
• C) decrease; remain constant
• D) increase; either increase, decrease, or remain constant

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Definitions:

Bank

A financial institution licensed to receive deposits, offer loans, and provide various financial services to its customers.

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer.

Draft Payable

A document instructing the payment of a specified amount of money, typically used in international trade.

Negotiability

The quality of a document (such as a check or note) signifying it can be transferred to another holder, who then has the legal right to enforce it.