Many Consumer Items Eventually Go Out of Style,and Because Fewer

question 8

Multiple Choice

Many consumer items eventually go out of style,and because fewer people want these items,demand for them drops.When this happens,we usually see production of these items stop.What happens to the equilibrium price and equilibrium quantity in a market like this?

• A) The equilibrium price goes up and equilibrium quantity goes up.
• B) The equilibrium price is indeterminate and equilibrium quantity goes up.
• C) The equilibrium price goes down and equilibrium quantity is indeterminate.
• D) The equilibrium price is indeterminate and equilibrium quantity goes down.
• E) The equilibrium price goes up and equilibrium quantity is indeterminate.

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Definitions:

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services within an economy.

Poverty

The state where an individual or community lacks the financial resources and essentials for a minimum standard of living.

Inheritance

The process by which property, titles, debts, rights, and obligations are transferred from the deceased to their legal heirs or beneficiaries.

Religious Toleration

The recognition of and respect for individuals' rights to hold and practice differing religious beliefs, often seen as a foundational principle for pluralistic and democratic societies.