When Both Supply and Demand Decrease,the Equilibrium Price

question 60

Multiple Choice

When both supply and demand decrease,the equilibrium price:

• A) increases and equilibrium quantity increases.
• B) is indeterminate and equilibrium quantity increases.
• C) decreases and equilibrium quantity is indeterminate.
• D) increases and equilibrium quantity is indeterminate.
• E) is indeterminate and equilibrium quantity decreases.

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Definitions:

Competition

A situation in which individuals or entities strive against each other to achieve a goal that cannot be shared.

Cooperative Reactions

Actions undertaken by individuals or groups that are designed to work together in a mutually beneficial manner.

Ingroup-Outgroup Bias

The tendency to favor members of one's own group (ingroup) over those from different groups (outgroup).

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture, often accompanied by prejudice towards other groups.