When the Supply of a Good Increases and the Demand

question 211

Multiple Choice

When the supply of a good increases and the demand stays the same

• A)the price of the good will rise.
• B)the price of the good will fall and quantity will not change.
• C)the price of the good will remain the same.
• D)the price of the good will fall and quantity will rise.

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Definitions:

Labor Surplus

A situation where the supply of labor exceeds the demand for labor, often leading to unemployment or underemployment.

Natural Attrition

The process of reducing the workforce through voluntary means, such as retirement or resignation, rather than layoffs or firings.

Transitional Matrix

A matrix used to describe the transitions between states in stochastic processes, often used in economics and statistics.

Propensity Analysis

A statistical approach often used to assess the impact of an intervention or treatment by accounting for the covariates that predict receiving the treatment.