When Demand Increases, the Equilibrium Price ________ and the Equilibrium

question 40

Multiple Choice

When demand increases, the equilibrium price ________ and the equilibrium quantity ________.

• A) rises; decreases
• B) falls; decreases
• C) rises; increases
• D) falls; increases

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Definitions:

Net Exports

The net amount obtained by subtracting the total imports from the total exports of a country.

Internationalized

The process of designing products, services, or operations to facilitate operation or distribution in multiple countries.

Budget Deficit

The financial shortfall when a government's expenditures exceed its revenues over a specified period.

Trade Balance

The gap between a nation's foreign sales and purchases, encompassing both goods and services.