Suppose Both the Equilibrium Price and Quantity Fall for a Particular

question 260

Multiple Choice

Suppose both the equilibrium price and quantity fall for a particular product. Which of the following best explains this situation?

• A) Supply and demand simultaneously increased and the shift in supply was greater than the shift in demand.
• B) Supply and demand simultaneously increased and the shift in supply was less than the shift in demand.
• C) Supply and demand simultaneously decreased and the shift in supply was greater than the shift in demand.
• D) Supply and demand simultaneously decreased and the shift in supply was less than the shift in demand.

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Definitions:

Collective Agreement

A written contract negotiated between an employer and a union representing the employees, outlining terms of employment.

Union Shop

Provision of the collective agreement that requires employees to join the union as a condition of their employment.

Compulsory Unionization

A policy or practice requiring all employees in a particular sector or company to become members of a union.

Organizing Campaigns

Initiatives typically conducted by labor unions to gain representation rights within a workplace or to mobilize workers around specific issues.