Suppose Both Demand and Supply Decrease

question 207

Multiple Choice

Suppose both demand and supply decrease. How do the equilibrium price and quantity change?

• A) Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous.
• B) Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.
• C) Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
• D) Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.

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Definitions:

ACT

Acceptance and Commitment Therapy, a form of psychotherapy that uses acceptance and mindfulness strategies mixed in different ways with commitment and behavior-change strategies.

Psychopathological Thoughts

Distorted or dysfunctional thinking patterns associated with mental disorders.

Normal Minds

Refers to the psychological state or cognitive abilities perceived as within the typical or average range of human functioning.

Dialectical Tensions

Refers to the conflicts between two opposing forces or desires that are inherent in relationships, often driving their dynamic change.