If Both the Supply and Demand for Computer Games Increase

question 7

Multiple Choice

If both the supply and demand for computer games increase, what will happen to the equilibrium price and quantity of the game?

• A) The price will be indeterminate and the quantity will rise.
• B) The price will be indeterminate and the quantity will fall.
• C) The price will fall and the quantity will also fall.
• D) The price will fall and the change in quantity will be indeterminate.

Calculate personal income and disposable personal income from given data.

Understand the calculation and significance of net exports, real GDP, and the GDP deflator.

Understand the concept of GDP and its components.

Analyze the relationship between nominal and real GDP.

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Definitions:

Goods And Services

Goods and services constitute the output of an economy, where goods are tangible products and services are intangible activities that provide value to consumers.

Scarcity

The limited nature of society’s resources.

Trade-Offs

Situations where having more of one thing necessarily means having less of another because of limited resources.

Allocate

The process of distributing resources or goods among various uses or individuals based on specific criteria, such as need or merit.