When Both Curves Shift

question 116

Multiple Choice

When both curves shift:

• A) equilibrium price is always indeterminate.
• B) equilibrium quantity is always indeterminate.
• C) equilibrium price and equilibrium quantity are indeterminate.
• D) equilibrium price or equilibrium quantity is indeterminate, but we cannot predict which one.
• E) neither equilibrium price nor equilibrium quantity is indeterminate.

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Definitions:

Cognitive Psychology

An area of psychology focused on studying mental processes such as perception, memory, thinking, and problem-solving.

Predict

The act of forecasting future events or conditions based on current knowledge or past experiences.

Describe

The act of giving a detailed account or picture of something in words, including all relevant characteristics, qualities, or events.

Explain

To make something clear or easy to understand by describing or giving information about it.