Consider a Market That Is in Equilibrium

question 26

Multiple Choice

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

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

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Definitions:

Political Domination

The exertion of control or influence over individuals, groups, or territories by a political authority, often maintained through legislative or coercive means.

Economic Domination

The control or dominance of one entity, group, or nation over others in economic contexts, influencing production, labor, and market forces.

Container Shipping

A method of shipping large quantities of goods using standardized shipping containers, facilitating efficient handling and transportation.

Technological Innovation

The introduction of new technologies or methods that improve processes, products, or services.