An Increase in Demand for a Product and a Reduction

question 76

Multiple Choice

An increase in demand for a product and a reduction in the costs of production would:

• A)​increase the equilibrium quantity and increase the equilibrium price.
• B)​increase the equilibrium quantity and decrease the equilibrium price.
• C)​increase the equilibrium quantity and cause an indeterminate change in the equilibrium price.
• D)​decrease the equilibrium quantity and cause an indeterminate change in the equilibrium price.

Understand how changes in the price of goods and their complements or substitutes affect demand.

Comprehend the concept of inferior and normal goods and how income changes impact demand.

Recognize how various factors such as income, prices of related goods, and changes in tastes or population can shift the demand curve.

Grasp the relationship between the price of goods and the quantity demanded according to the law of demand.

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Definitions:

Liable For Negligence

Being legally responsible for harm caused as a result of failing to exercise a level of care that a reasonably prudent person would have in a similar situation.

Rescue

The act of saving or delivering someone from a dangerous or distressing situation, often requiring immediate and decisive action.

Increases Danger

Enhances or escalates the level of risk or threat in a particular situation.

Implied Assumption Of Risk

A legal doctrine where an individual implicitly assumes the risk of harm in an activity, often limiting the liability of the defendant in personal injury cases.