Suppose That Both the Supply of IPads and the Demand

question 162

Multiple Choice

Suppose that both the supply of iPads and the demand for iPads decrease. One can predict that the:

• A)equilibrium price will rise, but the change in equilibrium quantity is uncertain.
• B)equilibrium price and quantity will fall.
• C)equilibrium price and quantity will rise.
• D)equilibrium quantity will fall, but the change in equilibrium price is uncertain.

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Definitions:

Market Basket

A collection of goods and services used to track inflation, consumer spending, or the cost of living in a specific area.

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, used to estimate inflation.

Base Year

A specific year against which economic growth or other economic indicators are measured, serving as a standard of comparison.

Current Year

Refers to the ongoing calendar year at the time of the statement or document.