An Increase in the Equilibrium Price for a Product Will

question 27

Multiple Choice

An increase in the equilibrium price for a product will result

• A)when the quantity demanded for the product exceeds the quantity supplied.
• B)when there is a decrease in supply and an increase in demand for the product.
• C)when there is a decrease in supply and a decrease in demand for the product.
• D)when there is an increase in demand and an increase in the number of firms producing the product.

---

Definitions:

Marginal Rate

Typically refers to the additional cost or benefit received from producing one more unit of a good or service.

Indifference Curve

A graph that shows combinations of goods between which a consumer is indifferent, meaning they derive the same level of satisfaction from each combination.

Preferences

Individual tastes or desires that influence choice behavior, guiding decisions in the face of scarcity.

Market Prices

The current price at which a good or service can be bought or sold, determined by supply and demand dynamics in a competitive marketplace.