Suppose the Market for a Good Is Initially in Equilibrium

question 190

Multiple Choice

Suppose the market for a good is initially in equilibrium. Which of the following is most likely to happen if supply increases by a smaller amount than the increase in demand?

• A) The equilibrium price will fall, and the equilibrium quantity will rise.
• B) The equilibrium price will rise, and the equilibrium quantity will fall.
• C) Both the equilibrium price and equilibrium quantity will rise.
• D) The equilibrium price will rise but the change in the equilibrium quantity is indeterminate.
• E) Both the equilibrium price and equilibrium quantity will fall.

---

Definitions:

Employee Training

This refers to the process where organizations provide their employees with opportunities to learn and improve their skills and knowledge, relevant to their job roles.

Training Activity

Exercises or programs designed to develop specific skills or knowledge among participants.

Trainer

a person who teaches skills to others, especially in a work context, focusing on improving their performance and capabilities.

Knowledge Acquired

The information, skills, and expertise that individuals gain through experience, education, or training.