Assume That Both the Demand Curve and the Supply Curve

question 45

Multiple Choice

Assume that both the demand curve and the supply curve for tablet computers shift to the left but the demand curve shifts more than the supply curve.As a result,

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

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Definitions:

Retirement Fund

A financial arrangement designed to replace employment income upon retirement, often made up of savings or investments accumulated during an individual's working life.

Base Salary

The initial rate of compensation that an employee receives in exchange for services, excluding extra payments like bonuses or commissions.

Behavioral Economics

A field of economic research that examines psychological, cognitive, emotional, cultural, and social factors on economic decisions.

Loss Aversion

A principle in behavioral economics stating that individuals tend to prefer avoiding losses to acquiring equivalent gains.