An Increase in Supply and a Decrease in Demand Occur

question 32

Multiple Choice

An increase in supply and a decrease in demand occur in a market. What happens to the equilibrium price and quantity?

• A) The equilibrium price decreases; the change in the equilibrium quantity is ambiguous.
• B) The equilibrium price decreases; the equilibrium quantity increases.
• C) The equilibrium price increases; the change in the equilibrium quantity is ambiguous.
• D) The equilibrium price increases; the equilibrium quantity decreases.

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Definitions:

Henry Fayol

A French engineer and a key figure in the development of classical management theory, known for his 14 principles of management.

Authority

describes the power or right given to individuals or entities to make decisions, issue orders, and enforce obedience.

Unity of Command

A principle in management stating that each employee should report to one and only one supervisor, to avoid confusion and conflict.

Universal Process

A principle or method that is broadly applicable across various domains or situations, often standardized to improve efficiency and effectiveness.