Following Adjustments to a New Equilibrium in a Market, the Equilibrium

question 50

Multiple Choice

Following adjustments to a new equilibrium in a market, the equilibrium quantity remains unchanged, but the market clearing price is now lower. Which of the following could definitely have caused this outcome?

• A) Demand and supply both increased.
• B) Demand and supply both decreased.
• C) Demand increased, and supply decreased.
• D) Demand decreased, and supply increased.

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Definitions:

Blastopore

The initial opening that develops during early embryonic development in animals, leading to the formation of the digestive tract.

Deuterostomes

A grouping of animals characterized by their embryonic development; during the formation of the mouth and anus, the anus forms before the mouth.

Protostomes

A group of animals within the animal kingdom that develop the mouth before the anus during embryonic development, as part of the blastopore’s fate.

Spiral Cleavage

A type of early embryonic development found in some invertebrates, where cells divide at oblique angles to each other.