Suppose That the Number of Buyers in a Market Increases

question 267

Multiple Choice

Suppose that the number of buyers in a market increases and a technological advancement occurs. What would we expect to happen in the market?

• A)The equilibrium price would increase, but the impact on the amount sold in the market would be ambiguous.
• B)The equilibrium price would decrease, but the impact on the amount sold in the market would be ambiguous.
• C)Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
• D)Both equilibrium price and equilibrium quantity would increase.

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Definitions:

Ethics

A set of moral principles that govern the behavior of individuals or organizations and guide decision-making and conduct.

Stakeholders

Stakeholders are individuals, groups, or organizations that have an interest in the performance and actions of a company, which can include shareholders, employees, customers, and suppliers.

Conflicts of Interest

Situations where an individual's or entity’s obligations to multiple parties could compromise the decision-making or actions taken, typically due to a clash between personal and professional interests.

Accounting Profit

The net income of a company as calculated by subtracting total expenses from total revenue, according to accounting rules.