An Increase in the Demand for a Commodity Accompanied by a Decrease

question 87

Multiple Choice

An increase in the demand for a commodity accompanied by a decrease in its supply will result in a(n) :

• A)decrease in price and an increase in quantity.
• B)increase in both price and quantity.
• C)increase in quantity while the price can increase or decrease.
• D)increase in price while the quantity can increase or decrease.

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Definitions:

Outstanding Mortgage

The remaining amount of money owed on a mortgage not yet repaid to the lender.

Utmost Good Faith

A principle that obliges all parties to an insurance contract to act honestly and disclose all relevant facts.

Real Estate Agent

A licensed professional who represents buyers or sellers in real estate transactions, facilitating the process of buying, selling, or renting property.