If Demand Decreases and Supply Increases, Price Will

question 62

Multiple Choice

If demand decreases and supply increases, price will

• A)always increase
• B)always decrease
• C)increase only if supply increases more than demand decreases
• D)increase only if supply increases less than demand decreases
• E)decrease only if supply increases more than demand decreases

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Definitions:

Network Externalities

The effect that one user of a good or service has on the value of that product to other people, often positive, as the number of users increases.

Product Variety

The variety of products or services a company provides or that are accessible in a marketplace.

Cost Diseconomies

Situations where costs per unit increase as a firm's operation scales up, often due to inefficiencies or increased complexity.

Celebrity Endorsement

The practice of using a famous person's support or approval to promote a product or service, leveraging their influence to reach potential customers.