Which of the Following Is True About the Market Equilibrium

question 378

Multiple Choice

Which of the following is true about the market equilibrium?

• A) ​As the price increases, the quantity demanded and the quantity supplied increases.
• B) ​As the price increases, the quantity demanded and the quantity supplied decreases.
• C) ​As the price increases, the quantity demanded increases and the quantity supplied decreases.
• D) ​As the price increases, the quantity demanded decreases and the quantity supplied increases.
• E) ​As the price increases, neither the quantity demanded nor quantity supplied change.
• ​

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Definitions:

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Externality

An economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume.

SARS

Severe Acute Respiratory Syndrome, a contagious and sometimes fatal respiratory illness caused by a coronavirus, with a notable outbreak in 2002-2003.

Shipbreaking

The process of dismantling an obsolete vessel's structure for scrapping or disposal.