One Can Say with Certainty That Equilibrium Quantity Will Increase

question 160

Multiple Choice

One can say with certainty that equilibrium quantity will increase when supply:

• A)and demand both decrease.
• B)increases and demand decreases.
• C)decreases and demand increases.
• D)and demand both increase.

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Definitions:

MSB > MSC

A condition where the marginal social benefit of consuming a good or service exceeds the marginal social cost, often justifying governmental intervention.

Methane Gas

A colorless, odorless gas that is a significant component of natural gas.

Marginal Social Cost

The cost society bears for the production of an additional unit of a good or service, including both private costs and externalities.

Pollution Emissions

The release of pollutants into the environment, often from industrial processes, vehicles, or other human activity.