Suppose That Demand Increases AND Supply Decreases

question 154

Multiple Choice

Suppose that demand increases AND supply decreases. What would happen in the market for the good?

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

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Definitions:

Bone

A rigid organ that forms part of the vertebrate skeleton, providing structural support to the body, protecting organs, anchoring muscles, and storing calcium.

Hyaline Cartilage

A type of connective tissue found in various parts of the body such as the nose, trachea, and larynx, characterized by its glossy, translucent appearance.

Tendons

Strong connective tissues that connect muscles to bones, transmitting the force that allows movement.

Ligaments

Strong, flexible fibers that connect bones to other bones at joints.