Suppose Demand Decreases and Supply Increases

question 355

Multiple Choice

Suppose demand decreases and supply increases. Which of the following will happen?

• A) Equilibrium price will rise, fall, or stay the same while equilibrium quantity will decrease.
• B) Equilibrium price will rise, fall, or stay the same while equilibrium quantity will increase.
• C) Equilibrium quantity will rise, fall, or stay the same and equilibrium price will increase.
• D) Equilibrium quantity will rise, fall, or stay the same while equilibrium price will decrease.
• E) The change in equilibrium price and quantity cannot be determined.

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Definitions:

Observational Methods

Research techniques that involve watching and recording behaviors or events as they occur without manipulating the situation.

Inaccurately

Incorrectly; without precision or truthfulness.

Informal Assessment Techniques

Methods used to evaluate individuals in a less structured manner, often using observation, interviews, or qualitative analysis.

Highly Valid

Refers to the extent to which evidence and theory support the interpretations of test scores for its intended purposes, indicating a high level of accuracy and reliability.