When Supply Increases and at the Same Time Demand Decreases

question 344

Multiple Choice

When supply increases and at the same time demand decreases, we

• A) can predict that both equilibrium price and quantity will increase.
• B) can predict that both equilibrium price and quantity will decrease.
• C) cannot predict equilibrium quantity, but know that equilibrium price will decrease.
• D) cannot predict the change in either the equilibrium quantity or equilibrium price.

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Definitions:

Creativity

The capability to produce or identify concepts, options, or opportunities that can aid in resolving issues, engaging in communication with people, and providing amusement to both ourselves and others.

Low Tolerance

A reduced capacity or willingness to accept deviations from a standard or to endure difficult conditions or treatment.

Internal Locus

This concept describes individuals who believe they have control over their life events and outcomes, as opposed to being controlled by external factors.

Creativity

The use of imagination or original ideas to create something; inventiveness.