Ceteris Paribus, an Increase in the Supply of a Good

question 94

Multiple Choice

Ceteris paribus, an increase in the supply of a good causes which of the following?

• A) Lowers the equilibrium price, and reduces the quantity bought and sold.
• B) Raises the equilibrium price, and raises the quantity bought and sold.
• C) Raises the equilibrium price, and increases the quantity bought and sold.
• D) Lowers the equilibrium price, and increases the quantity bought and sold.
• E) Equilibrium price and equilibrium quantity change are indeterminate.

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Definitions:

External Attributions

The act of ascribing one's own or other people's actions to outside elements or circumstances.

Internal Attributions

The process of assigning the cause of behavior to something within the individual, such as their personality or effort.

Fundamental Attribution Error

The bias of overemphasizing personal traits and underestimating situational factors when explaining other people's behaviors.

Wealthy People

Individuals who possess a substantial amount of money, assets, or resources, significantly above the societal average.