If the Supply Increases, the Result Is _____ Equilibrium Price

question 89

Multiple Choice

If the supply increases, the result is _____ equilibrium price and _____ equilibrium quantity.

• A) lower; lower
• B) lower; higher
• C) higher; lower
• D) higher; higher

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Definitions:

Scarce

Describes resources or goods that are limited in availability and cannot satisfy all the wants and needs of consumers.

Positive Economics

A branch of economics focused on the description and explanation of economic phenomena, as opposed to normative economics which prescribes policies.

Value Judgments

Assessments based on personal or societal preferences, beliefs, or ethics, as opposed to objective measurements.

Policy Alternatives

Various strategies or plans of action that policy-makers can consider and potentially implement to address specific public issues.