Ceteris Paribus, If the Market Supply of a Product Increases

question 147

Multiple Choice

Ceteris paribus, if the market supply of a product increases, what will happen to the equilibrium quantity and price of the product?

• A) The quantity will decrease and the price will increase.
• B) The quantity will increase and the price will decrease.
• C) The quantity will decrease and the price will be indeterminate.
• D) The quantity will increase and the price will increase.

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Definitions:

Crisis Management

The identification, prevention, and handling of emergencies, especially those that threaten to harm an organization's people, profitability, or reputation.

Inadequate Information

A situation where the data available is insufficient or too vague to support effective decision-making or understanding.

Teamwork

The joint effort of a team to accomplish a shared objective or to finalize a task in the most effective and efficient manner.

Top Managers

Guide the performance of the organisation as a whole, or of one of its major parts.