Suppose the Market for a Good Is Initially in Equilibrium

question 62

Multiple Choice

Suppose the market for a good is initially in equilibrium. Which of the following is most likely to occur if both the demand for and the supply of the good increases during a particular point in time?

• A) The equilibrium price will increase.
• B) The equilibrium price will decrease.
• C) The equilibrium quantity will increase.
• D) The equilibrium quantity will decrease.
• E) Both the equilibrium price and equilibrium quantity will decrease.

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Definitions:

Mask

A mask in digital computing and data processing is a pattern of bits used to accept or reject certain bits within another set of data by applying logical AND, OR, or XOR operations, often for purposes such as manipulating, extracting, or hiding data.

Transfer

The action of moving data or control from one part of a system to another, such as from memory to a processor or between devices.

Source

Origin from which something comes or is obtained, often used in the context of electrical circuits or programming to denote the supplier of input signals.

Destination

Destination refers to the intended end point or target for data transmission, travel, or any process where something is being moved or directed toward a specific location or goal.