Given a Downward-Sloping Demand Curve and an Upward-Sloping Supply Curve

question 46

Multiple Choice

Given a downward-sloping demand curve and an upward-sloping supply curve for product A,an increase in the price of substitute product B and a simultaneous technological innovation in making product A will:

• A)increase equilibrium quantity, but the change in equilibrium price will depend on the relative sizes of the shifts in demand and supply
• B)decrease equilibrium quantity, but the change in equilibrium price will depend on the relative sizes of the shifts in demand and supply
• C)increase equilibrium price, but the change in equilibrium quantity will depend on the relative sizes of the shifts in demand and supply
• D)decrease equilibrium price, but the change in equilibrium quantity will depend on the relative sizes of the shifts in demand and supply
• E)keep equilibrium price and quantity the same

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Definitions:

Planning

The methodology of establishing objectives, formulating strategies, and detailing the tasks and timelines needed to achieve those objectives.

Springboard To Success

A metaphorical phrase indicating a situation, opportunity, or resource that significantly aids in achieving success.

Planning

The process of setting goals, defining strategies to achieve those goals, and developing plans to integrate and coordinate activities.

Creativity

The ability to generate innovative ideas and solve problems in novel ways.