A Competitive Market Is in Equilibrium

question 332

Multiple Choice

A competitive market is in equilibrium.Then there is an increase in demand and an increase in supply.The equilibrium price ________,and the equilibrium quantity ________.

• A) rises; increases
• B) perhaps changes but we can't say if it rises, falls, or stays the same; does not change
• C) falls; increases
• D) perhaps changes but we can't say if it rises, falls, or stays the same; increases
• E) falls; perhaps changes but we can't say if it increases, decreases, or stays the same

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Definitions:

Unconditioned

Refers to stimuli or responses that occur naturally without any prior learning or conditioning.

Specific Stimulus

A distinct environmental cue that elicits a particular response from an organism.

Specific Response

A particular reaction or behavior elicited by a specific stimulus or situation.

Early Childhood Experiences

Events and interactions in the first years of life that significantly influence one's development and personality.