If Both Supply and Demand Decrease by the Same Amount,the

question 277

Multiple Choice

If both supply and demand decrease by the same amount,the equilibrium price

• A) does not change.
• B) rises.
• C) falls.
• D) cannot be predicted.
• E) None of the answers is correct because the price depends on what happens to the equilibrium quantity.

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Definitions:

Practical Approach

implies a focus on real-world applications and results, favoring straightforward, viable solutions over theoretical conjectures.

Annual Adjustment

A modification made yearly to account for changes in economic or financial conditions, such as indexing the scale of tax brackets to inflation.

Exemption Amount

This refers to a specific amount set by tax laws that a taxpayer can claim to reduce taxable income, potentially lowering the overall tax burden.

Head of Household

A tax filing status for unmarried individuals who provide more than half of the financial support for a household and have a qualifying dependent.