Assume That Supply Increases Slightly and Demand Increases Greatly

question 15

Multiple Choice

Assume that supply increases slightly and demand increases greatly. Which of the following will happen?

• A) Equilibrium price will fall and equilibrium quantity will rise.
• B) Equilibrium price will rise and equilibrium quantity will fall.
• C) Equilibrium price will rise and equilibrium quantity will rise.
• D) Equilibrium price will fall and equilibrium quantity will fall.
• E) Neither equilibrium price nor equilibrium quantity will change.

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Definitions:

Free Association

A psychoanalytic technique in which a patient says whatever comes to mind without censorship, used to explore subconscious thoughts and feelings.

Psychoanalysis

A method of psychology founded by Sigmund Freud, focusing on exploring unconscious motives and conflicts.

Rational-Emotive Therapy

A form of cognitive-behavioral therapy founded by Albert Ellis that helps individuals identify and challenge irrational beliefs, encouraging more realistic and self-helping thoughts.

Emotions

Complex psycho-physiological experiences of an individual's state of mind as interacting with biochemical and environmental influences.