Equilibrium Price Must Increase When Demand

question 78

Multiple Choice

Equilibrium price must increase when demand

• A)increases and supply does not change,when demand does not change and supply decreases,and when demand decreases and supply increases simultaneously.
• B)increases and supply does not change,when demand does not change and supply decreases,and when demand increases and supply decreases simultaneously.
• C)decreases and supply does not change,when demand does not change and supply increases,and when demand decreases and supply increases simultaneously.
• D)decreases and supply does not change,when demand does not change and supply increases,and when demand increases and supply decreases simultaneously.

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Definitions:

Marginal Utility

The additional utility or satisfaction a consumer gains from consuming one more unit of a good or service.

Apples

A common fruit consumed worldwide, often used as an example in economic models and comparisons.

Oranges

A citrus fruit known for its vibrant color and sweet, tangy flavor, often consumed fresh or used in juices.

Marginal Rate

The amount by which a quantity changes with respect to a change in another quantity, often used in the context of taxes or productivity.