Assume That Both the Demand Curve and the Supply Curve

question 271

Multiple Choice

Assume that both the demand curve and the supply curve for smart phones shift to the right but the demand curve shifts more than the supply curve.As a result

• A)both the equilibrium price and quantity of smart phones will increase.
• B)the equilibrium price of smart phones will increase; the equilibrium quantity may increase or decrease.
• C)the equilibrium price of smart phones may increase or decrease; the equilibrium quantity will increase.
• D)the equilibrium price of smart phones will decrease; the equilibrium quantity may increase or decrease.

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Definitions:

Acquisition

The process of learning or acquiring new information or skills.

Incentive

A factor, often a reward or benefit, that motivates an individual to perform an action or behave in a specific way.

Instinctive

Behavior that is innate and hardwired in an organism, often performed without being learned.

Self-awareness

Self-awareness is the conscious knowledge of one's own character, feelings, motives, and desires, enabling introspection and recognition of one's own emotional state.