Suppose Both the Equilibrium Price and Quantity Fall for a Particular

question 260

Multiple Choice

Suppose both the equilibrium price and quantity fall for a particular product. Which of the following best explains this situation?

• A) Supply and demand simultaneously increased and the shift in supply was greater than the shift in demand.
• B) Supply and demand simultaneously increased and the shift in supply was less than the shift in demand.
• C) Supply and demand simultaneously decreased and the shift in supply was greater than the shift in demand.
• D) Supply and demand simultaneously decreased and the shift in supply was less than the shift in demand.

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Definitions:

Per Capita Income

Represents the average income earned per person in a given area in a specified year.

Standard Of Living

The level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or a certain geographic area.

Per Capita Income

The average income earned per person in a given area in a specified year, often used to gauge the economic prosperity of a population.

Tariff Barriers

Taxes imposed on imported goods to protect domestic industries from foreign competition and raise government revenue.