If the Demand for a Good Increases by More Than

question 217

Multiple Choice

If the demand for a good increases by more than the supply of the good increases,then the good's equilibrium price will __________ and its equilibrium quantity will __________.

• A) rise; fall
• B) rise; rise
• C) fall; fall
• D) fall; rise

---

Definitions:

United States

A nation located in North America, made up of 50 states, a federal district, five significant autonomous territories, and a multitude of possessions, recognized for its vast economy and heterogeneous population.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for.

Inequality

The unequal distribution of income, wealth, opportunities, and other economic variables within a society.

Countries

Geographically and politically defined areas, recognized as distinct entities in political geography.