If Supply Decreases While Demand Increases Simultaneously, the New Equilibrium

question 10

Multiple Choice

If supply decreases while demand increases simultaneously, the new equilibrium price is ___________ and the new equilibrium quantity is _________________.

• A)lower; lower
• B)lower; indeterminate
• C)indeterminate; higher
• D)higher; indeterminate

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Definitions:

Marginal Benefits

The additional satisfaction or utility gained from consuming or producing one more unit of a good or service.

Highway Programs

Government-funded initiatives aimed at constructing, expanding, or maintaining road networks for public and commercial use.

Crime-Control Program

Initiatives designed to reduce crime and increase public safety through various means, including law enforcement, changes in policy, or community programs.

Net Benefits

The difference between the total benefits received from a decision or action and the total costs associated with it.