Suppose We Observe an Increase in the Price of Good

question 121

Multiple Choice

Suppose we observe an increase in the price of good A and an increase in the quantity of good A exchanged.Which of the following is a likely explanation?

• A)The "law of demand" is violated.
• B)The "law of supply" is violated.
• C)The supply of good A has increased.
• D)There is an excess supply of good A.
• E)The demand for good A has increased.

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Definitions:

Distinct Colour

A unique or specific color used to identify or differentiate products, brands, or entities.

Undisclosed Financial Interest

A situation where an individual has a financial stake in an undertaking that they have not made known, potentially leading to a conflict of interest.

Doctrine of Constructive Notice

A principle in law whereby individuals are assumed to be aware of their legal rights and obligations, even if they do not possess actual knowledge of them.

Indoor Management Rule

A party dealing with a corporation may assume that the officers have the valid and express authority to bind the corporation.