When Supply Increases and at the Same Time Demand Decreases

question 344

Multiple Choice

When supply increases and at the same time demand decreases, we

• A) can predict that both equilibrium price and quantity will increase.
• B) can predict that both equilibrium price and quantity will decrease.
• C) cannot predict equilibrium quantity, but know that equilibrium price will decrease.
• D) cannot predict the change in either the equilibrium quantity or equilibrium price.

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Definitions:

Follower Position Power

The influence and authority a follower can exert due to their position or role within a group or organization.

Formal Authority

The power and legitimacy granted to an individual or an organization's position, as per the stated rules and policies.

Contingent Rewards

A form of motivation based on the premise that the reward is given only if certain predefined conditions are met.

Goal Accomplishment

The achievement of pre-determined objectives or targets, often used as a measure of success or productivity.