The Price of Cotton Rises

question 136

Multiple Choice

The price of cotton rises.What happens in the market for cotton shirts?

• A) The equilibrium price falls and the equilibrium quantity rises.
• B) The equilibrium price rises and the equilibrium quantity falls.
• C) The equilibrium price and quantity rise.
• D) The equilibrium price and quantity fall.

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Definitions:

Depth Perception

The ability to see objects in three dimensions although the images that strike the retina are two-dimensional; allows us to judge distance.

Continuity

The unbroken and consistent existence or operation of something over a period of time.

Closure

The psychological feeling or process of resolving a traumatic or unsettling event, issue, or relationship.

Proximity

The physical or psychological closeness between people or objects, influencing their interaction and perceptions of one another.