An Increase in the Demand for a Commodity Accompanied by a Decrease

question 43

Multiple Choice

An increase in the demand for a commodity accompanied by a decrease in its supply will result in a(n) :

• A)decrease in price and an increase in quantity.
• B)increase in both price and quantity.
• C)increase in quantity while the price can increase or decrease.
• D)decrease in price while the quantity can increase or decrease.

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Definitions:

Universality

The quality of being true or applicable in all situations, cultures, or cases.

Evaluative Readjustment

The process of adjusting one's evaluation or appraisal of a situation or information, based on new evidence or perspectives.

Encounter

A meeting or engaging experience between individuals, often leading to an exchange of ideas or a conflict.

Psychoanalytic

Pertaining to the theory and practice of psychoanalysis, which emphasizes unconscious psychological processes and their effects on behavior.