Consider the Market for a Good That Is Initially in Equilibrium.Which

question 62

Multiple Choice

Consider the market for a good that is initially in equilibrium.Which of the following is most likely to happen if supply increases by a smaller amount than the increase in demand?

• A)Equilibrium price will fall and equilibrium quantity will rise.
• B)Equilibrium price will rise and equilibrium quantity will fall.
• C)Both equilibrium price and equilibrium quantity will rise.
• D)Equilibrium price will rise but the change in equilibrium quantity is indeterminate.
• E)Both equilibrium price and equilibrium quantity will fall.

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Definitions:

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The process of recording financial transactions in the general journal, part of the double-entry bookkeeping system.

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