An Increase in Demand Has More Effect on the Equilibrium

question 2

True/False

An increase in demand has more effect on the equilibrium quantity than the price if supply is price inelastic.

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Definitions:

Adverse Effect

A negative impact or harm that is caused by an action or event.

Material Effect

An impact significant enough to influence a decision, action, or the outcome of a situation, often used in legal and financial contexts.

Misrepresentation

The act of providing false, misleading, or inaccurate information with the intent to deceive or mislead.

Mistake

In legal terms, an erroneous belief, at contracting, that certain facts are true.