When the Supply of a Good Decreases, There Will Be

question 178

Multiple Choice

When the supply of a good decreases, there will be a(n) :

• A)decrease in demand.
• B)decrease in buyers' reservation prices for the good.
• C)decrease in the quantity demanded.
• D)increase in the quantity demanded.

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Definitions:

Bargained-For Exchange

An agreement between parties where each receives something of value in exchange for something else.

Nominal Consideration

A minimal amount given in a contract that is not calculated by the actual value of the transaction but is symbolic, to make the agreement legally binding.

Moral Obligations

Ethical duties that a person feels compelled to perform based on personal beliefs about right and wrong, despite not being enforceable by law.

Illusory

Appearing to be real or possible, but actually being deceptive or unreal.