If the Supply of a Product Increases, What Would We

question 198

Multiple Choice

If the supply of a product increases, what would we expect?

• A) equilibrium price to increase and equilibrium quantity to decrease
• B) equilibrium price to decrease and equilibrium quantity to increase
• C) equilibrium price and equilibrium quantity to both increase
• D) equilibrium price and equilibrium quantity to both decrease

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Definitions:

Reasonable Basis

A justification or foundation for belief or action that is considered fair or sensible under given circumstances.

Claims

Demands for something due or believed to be due, typically used in the context of legal or insurance disputes.

Consent Order

A statement in which a company agrees to stop disputed behavior but does not admit that it broke the law.

Federal Trade Commission

An independent agency of the United States government, established in 1914 to prevent unfair business practices and to protect consumers.