An Increase in Demand and a Decrease in Supply Cause

question 34

Multiple Choice

An increase in demand and a decrease in supply cause which of the following?

• A) Equilibrium price change is indeterminate.
• B) Equilibrium quantity decreases.
• C) Equilibrium price falls.
• D) Equilibrium price rises.

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Definitions:

Self-Control

The ability to regulate one's emotions, thoughts, and behavior in the face of temptations and impulses.

Mood Swings

Rapid and extreme fluctuations in a person's emotional state.

External Control Orientation

The belief that one's outcomes or fate are determined by external forces beyond one's control.

Initiative

The ability to take the lead and start actions independently without needing encouragement or direction from others.