If the Demand for a Good Increases, Which of the Following

question 359

Multiple Choice

If the demand for a good increases, which of the following will generally occur in a market setting?

• A) The price of the good will decrease.
• B) The supply of the good will increase.
• C) The quantity supplied will increase.
• D) Producer profits will fall.

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Definitions:

Long-Term

Pertaining to or involving an extended period, especially with reference to retention of information or memory.

Prospective

Relating to or effective in the future, often used in studies that follow subjects forward in time.

Magical Number

The Magical Number, often referred to as "seven plus or minus two," is a theory suggesting the limit of an individual's ability to process, hold, and recall information in short-term memory.

George Sperling

A psychologist known for his research on the capacity of visual memory and the temporal duration of visual sensory memory.