An Increase in Demand, All Other Things Unchanged, Will Result

question 28

Multiple Choice

An increase in demand, all other things unchanged, will result in a(n) ________ in the equilibrium price and a(n) ________ in the equilibrium quantity.

• A) increase; increase
• B) decrease; decrease
• C) decrease; increase
• D) increase; decrease

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Definitions:

Demand Shift

A change in the quantity of a product or service that consumers are willing and able to buy at all price levels, caused by factors other than the price of the product itself.

Operating Costs

are expenses associated with the day-to-day functioning of a business, such as rent, utilities, and payroll.

Price of Eggs

The monetary cost required to purchase eggs, which can vary based on factors such as location, type of eggs, and market conditions.

Price Gouging

A situation where sellers increase the prices of goods, services, or commodities to a level much higher than is considered reasonable or fair, often during a crisis.