Assuming That the Demand and Supply of a Good Have

question 219

Multiple Choice

Assuming that the demand and supply of a good have moved in the same direction, and by the same amount, the new equilibrium would represent:

• A)​an increase in price and an increase in quantity exchanged.
• B)​no change in price and an increase in quantity exchanged.
• C)​a decrease in price and a decrease in quantity exchanged.
• D)​no change in price, and an indeterminate change in quantity exchanged.

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Definitions:

Labor-Intensive

A term describing a process or industry that requires a large amount of labor to produce its goods or services as compared to the amount of capital required.

Comparative Advantage

The capacity of a being to generate a product or offer a service at a reduced opportunity cost in comparison to another.

Cars

motor vehicles with wheels designed primarily for the transport of people rather than goods.

Lumber

Timber that has undergone transformation into boards and beams, representing an intermediate phase in the creation of wooden materials.