A Decrease in Supply Will Cause the Smallest Increase in Price

question 33

Multiple Choice

A decrease in supply will cause the smallest increase in price when

• A)both supply and demand are inelastic.
• B)demand is elastic and supply is inelastic.
• C)both supply and demand are elastic.
• D)demand is inelastic and supply is elastic.

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Definitions:

Superordinate Goals

Shared goals that override differences among people and require their cooperation.

Stereotypes

Widely held but simplified and generalized beliefs about a particular group of people or type of person.

Ingroup Bias

The tendency to favor our own group.

Prejudice

An unjustifiable (and usually negative) attitude toward a group and its members. Prejudice generally involves stereotyped beliefs, negative feelings, and a predisposition to discriminatory action.