If Supply Decreases Along a Given Demand Curve,______

question 95

Multiple Choice

If supply decreases along a given demand curve,______.

• A)there will be an excess quantity demanded in the market,resulting in an increase in the equilibrium price and a decrease in the equilibrium quantity
• B)there will be an excess quantity supplied in the market,resulting in a decrease in the equilibrium price and an increase in the equilibrium quantity
• C)there will be an excess quantity demanded in the market,resulting in an increase in both the equilibrium price and quantity
• D)there will be an excess quantity supplied in the market,resulting in a decrease in both the equilibrium price and quantity
• E)price will fall,shifting the demand curve outward and raising the equilibrium quantity

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Definitions:

Monthly Profit

The net amount of money gained by a business during a one-month period after all expenses have been paid.

Binding Constraint

A constraint in an optimization problem that directly limits the ability to achieve an optimal solution, where any relaxation of the constraint would improve the outcome.

Slack

The amount of time a project task can be delayed without causing a delay to subsequent tasks or the overall project deadline.

Zero

The integer that precedes the positive one and follows the negative one; it is neither negative nor positive.