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:

Rescission

The process of formally terminating a contract, returning all involved parties to their pre-contractual state, often due to mistakes, fraud, or misrepresentation.

Punitive Damages

Compensation awarded to a plaintiff beyond actual damages, intended to punish the defendant for particularly harmful actions and deter similar future conduct.

Misrepresents

The act of providing false, misleading, or incorrect information about a material fact, intentionally or otherwise.

Tort of Deceit

A legal claim arising from intentionally misleading or deceiving another, causing harm or loss.