If the Supply of Bottled Water Decreases and at the Same

question 27

Multiple Choice

If the supply of bottled water decreases and at the same time the demand for bottled water increases, the equilibrium price ________ and the equilibrium quantity ________.

• A) might rise, fall, or stay the same; decreases
• B) might rise, fall, or stay the same; increases
• C) falls; increases
• D) rises; might increase, decrease, or stay the same

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Definitions:

Reliability

The degree to which an experiment, test, or measuring procedure yields the same results on repeated trials, indicating consistency and dependability.

Market Definition

The process of characterizing the boundaries of a market, including potential customers and competing products, to understand its dynamics and size.

Effective

Having the intended or expected outcome; the ability to achieve specific goals or results.

Fixed

Costs or expenses that do not change with the level of goods or services produced within a certain time period.