When Both Supply and Demand Shift to the Right

question 3

Multiple Choice

When both supply and demand shift to the right:

• A) equilibrium price always rises.
• B) equilibrium price always falls.
• C) equilibrium quantity always falls.
• D) equilibrium quantity always rises.
• E) equilibrium quantity is indeterminate.

Analyze how the law of diminishing marginal utility affects consumer choices and total satisfaction.

Understand how special pricing (such as sales or discounts) affects consumer surplus.

Interpret demand curves and calculate consumer surplus from graphical representations.

Demonstrate how utility theory applies to real-world decisions and consumption patterns.

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Definitions:

Ciliates

A group of protozoans characterized by the presence of hair-like structures called cilia used for movement and feeding.

Actinopods

A group of protozoa characterized by long, slender pseudopodia used for catching food and locomotion.

Cytoplasmic Projections

Extensions of the cell's cytoplasm, such as cilia and flagella, that can move the cell or move fluids past the cell.

Axopods

Long, slender, and sometimes retractable projections of some eukaryotic cells involved in locomotion or feeding.