What Happens to the Equilibrium Price and Equilibrium Quantity of a Good

question 113

Multiple Choice

What happens to the equilibrium price and equilibrium quantity of a good if both the producers and the consumers of that good expect its price to be higher in the future?

• A) The equilibrium price will go up and equilibrium quantity will go up.
• B) The equilibrium price will go down and equilibrium quantity will be indeterminate.
• C) The equilibrium price will be indeterminate and equilibrium quantity will go up.
• D) The equilibrium price will go up and equilibrium quantity will be indeterminate.
• E) The equilibrium price will be indeterminate and equilibrium quantity will go down.

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Definitions:

Problem-Minimization Coping

A coping strategy that involves underestimating or downplaying the seriousness of a problem or stressor.

Situation-Minimization Coping

Situation-Minimization Coping involves strategies aimed at reducing the perceived impact or significance of a stressor or problem, often by downplaying or rationalizing its importance.

Competitive

Characterized by or showing a strong desire to be more successful than others in activities, sports, work, or any area of life.

Easygoing

Characterized by a relaxed, calm, and not easily upset or disturbed temperament.