Assume That Both the Demand Curve and the Supply Curve

question 118

Multiple Choice

Assume that both the demand curve and the supply curve for MP3 players shift to the right but the demand curve shifts more than the supply curve.As a result

• A)both the equilibrium price and quantity of MP3 players will increase.
• B)the equilibrium price of MP3 players will increase; the equilibrium quantity may increase or decrease.
• C)the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will increase.
• D)the equilibrium price of MP3 players will decrease; the equilibrium quantity may increase or decrease.

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Definitions:

Sales Approach

A method or strategy used by salespeople to introduce and sell a product or service to potential customers.

Reciprocity

An agreement whereby a person or organization buys a product if the person or organization selling the product also buys a product from the first party.

Preconceived Answers

Responses or conclusions formed in advance of obtaining complete information or experience, often based on assumptions.

Pocket Planner

A pocket planner is a compact, portable calendar or agenda used for organizing appointments, tasks, and notes, typically small enough to fit in a pocket or handbag.