Suppose That for a Given Good Demand Increases and Supply

question 128

Multiple Choice

Suppose that for a given good demand increases and supply increases at the same time.If demand increases by a lesser amount than supply increases,then equilibrium price __________ and equilibrium quantity __________ for that good.

• A) rises; falls
• B) falls; falls
• C) rises; rises
• D) falls; rises

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Definitions:

Decision-making Biases

Systematic errors in thinking that affect the decisions and judgments that people make.

Persuasive Argument Theory

A theory suggesting that the process of persuasion involves the presentation of arguments, which leads to attitude change when the arguments are received and accepted by an individual.

Actor-observer Difference

A cognitive bias where people tend to attribute their own actions to external situations while attributing others' actions to their personalities or dispositions.

Bias

A tendency to lean in a certain direction, often unfairly, in thought or decision, usually leading to a prejudiced outcome.