In Which of the Following Situations Will Both Market Clearing

question 395

Multiple Choice

In which of the following situations will both market clearing price and the equilibrium quantity increase?

• A) an increase in demand with no change in supply
• B) an increase in supply with no change in demand
• C) a decrease in supply with no change in demand
• D) a decrease in demand with no change in supply

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Definitions:

Authority, Consultative

A management style where decision-making is shared among leaders and followers, but the ultimate authority rests with the leaders who solicit and consider input from subordinates.

Path-Goal Leadership Theory

A theory that suggests leaders can increase subordinate satisfaction and performance by clarifying the paths to goals and removing obstacles to performance.

Supportive Leadership Style

A leadership approach focusing on the well-being of employees, encouraging participation and providing necessary support.

Path-Goal Leadership Theory

An approach suggesting that a leader's behavior is contingent to the satisfaction, motivation, and performance of their subordinates.