What Happens to Equilibrium Price When Simultaneously Demand Increases and Supply

question 200

Multiple Choice

What happens to equilibrium price when simultaneously demand increases and supply decreases?

• A)Equilibrium price will increase.
• B)Equilibrium price will decrease.
• C)Equilibrium price will remain the same.
• D)Equilibrium price may increase,decrease,or remain the same depending on the magnitude of the shifts in demand and supply.

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Definitions:

Private Securities Litigation Reform Act

A 1995 federal law that imposed several significant reforms on the process of bringing securities fraud lawsuits in order to reduce frivolous claims.

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1934 Securities Act

U.S. legislation aimed at regulating the secondary securities market, requiring disclosure of material information related to securities transactions and aimed at combating fraud and manipulation.