Which of the Following Would Cause a Decrease in the Equilibrium

question 81

Multiple Choice

Which of the following would cause a decrease in the equilibrium price and an increase in the equilibrium quantity of salmon?

• A)A decrease in demand and an increase in supply
• B)An increase in supply
• C)An increase in supply and an increase in demand greater than the increase in supply
• D)A decrease in demand and a decrease in supply

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Definitions:

Marginal Product

The additional output that is produced by using one more unit of a given input.

Vertical Axis

The vertical axis in a graph or chart is the y-axis, representing the quantity or degree of the variable measured.

Capital Market

A financial market in which long-term debt or equity-backed securities are bought and sold, different from the short-term funds seen in the money market.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price.