Consider a Market That Is in Equilibrium

question 12

Multiple Choice

Consider a market that is in equilibrium.If it experiences both a decrease in demand and a decrease in supply,what can be said of the new equilibrium? The equilibrium:

• A) price and quantity will both fall.
• B) quantity will definitely fall, while the equilibrium price cannot be predicted.
• C) price will definitely fall, while the equilibrium quantity cannot be predicted.
• D) price and quantity will both rise.

---

Definitions:

Counterconditioning

A behavior therapy technique that involves replacing an unwanted response to a stimulus with a wanted response.

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning, without delving into the underlying psychological causes.

Aversive Conditioning

A behavior conditioning technique in which unpleasant stimuli are associated with undesirable behaviors to discourage those behaviors.

Negative Response

An adverse or unwelcoming reaction to a stimulus, situation, or input.