What Combination of Changes in Supply and Demand Would Most

question 126

Multiple Choice

What combination of changes in supply and demand would most likely increase the equilibrium quantity?

• A)when supply increases and demand increases
• B)when supply decreases and demand decreases
• C)when supply decreases and demand increases
• D)when supply increases and demand decreases

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Definitions:

Self-Interest

The pursuit of personal advantage and well-being, often considered the motivating factor behind economic activities.

Utility

The satisfaction or benefit derived by consumers from consuming goods and services.

Opportunity Cost

The potential benefit that is missed out on when choosing one alternative over another.

Production Possibilities

Production possibilities refer to the different combinations of goods and services that an economy can produce given its available resources and technology, illustrated by the production possibilities frontier (PPF).