If Demand Decreases and Supply Increases in a Market That

question 195

Multiple Choice

If demand decreases and supply increases in a market that is initially in equilibrium, then _____

• A) the equilibrium price will remain unchanged.
• B) the equilibrium price will always decrease.
• C) the equilibrium price will always increase.
• D) the equilibrium quantity will always decrease.
• E) the equilibrium quantity will remain unchanged.

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Definitions:

Bad Decisions

Choices made that lead to undesirable outcomes due to poor judgment, lack of information, or failure to anticipate consequences.

Insufficient Financing

A situation where the available financial resources are not adequate to support the current operations or growth plans of a business.

Maintaining Operations

The ongoing activities required to keep a system, process, or piece of equipment running effectively.

Access to Customers

The ability of a business to reach and interact with its target audience, essential for marketing, sales, and customer service.