Suppose Demand Increases and Supply Increases

question 81

Multiple Choice

Suppose demand increases 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:

Behaviorism

A school of psychology that focuses on observable behaviors and the ways in which they're learned, rather than on feelings or thoughts.

Psychology

The science of behavior and mental processes.

Objective Science

Objective science pertains to the study of the natural world based on observable, measurable evidence, free from personal biases or emotions.

Conditioned Response

A learned reaction or response to a previously neutral stimulus after repeated association with an unconditioned stimulus.