Suppose That for a Given Good Demand Decreases and Supply

question 22

Multiple Choice

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

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

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Definitions:

Present Value

The current-day worth of an anticipated future money amount or cash flow sequences, calculated using a particular rate of return.

Received

Refers to any amount of money received by a party or business, usually in the context of payments for goods or services.

Annually

Pertaining to an event or activity that occurs once every year.

New Home Prices

The selling prices of newly constructed homes currently on the market.