If the Demand Increases but Supply Decreases,then

question 72

Multiple Choice

If the demand increases but supply decreases,then:

• A)these two effects cancel each other out and there is no change in the market equilibrium.
• B)the price will increase and the quantity will depend on the magnitude of shifts.
• C)the price will increase and the quantity will decrease.
• D)the price will increase and the quantity will increase.
• E)the price will decrease and the quantity will depend on the magnitude of shifts.

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Definitions:

Private Cause

A legal action initiated by an individual or entity for personal reasons or grievances.

Unordered Merchandise

Goods sent to a person without their request, where the recipient is generally not legally obligated to pay for or return the items.

Telephone Charge

A fee assessed for the provision of telephone service, including local and long-distance calls.

Vendor

A person or company offering something for sale, especially a trader in the retail industry, dealing specifically with goods or services.