If the Demand for Beer Increased, What Would Be the Effect

question 132

Multiple Choice

If the demand for beer increased, what would be the effect on the equilibrium price and quantity of beer?

• A) price increases, quantity decreases
• B) price decreases, quantity decreases
• C) price increases, quantity increases
• D) price decreases, quantity increases

---

Definitions:

Purchasing Power

The amount of goods or services that can be bought with one unit of a currency, showcasing its value.

CPI

An index measuring the variation in price level of a market basket of consumer goods and services purchased by households, frequently used to identify periods of inflation or deflation.

Converted

The process of changing or causing something to change from one form to another.

Remaining to Spend

The amount of budget or funds left available to use or allocate.