In the Figure Given Below, D₁ and S₁ Are the Initial

question 36

Multiple Choice

In the figure given below, D₁ and S₁ are the initial demand and supply curves for a commodity in the market.Figure 3.3
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-If both supply and demand for a good increase, which of the following will definitely happen?

• A)Equilibrium price will remain the same
• B)Equilibrium price will increase
• C)Equilibrium price will decrease
• D)Equilibrium quantity will increase
• E)Equilibrium quantity will decrease

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Definitions:

Charles Spearman

A psychologist known for his pioneering work in statistics and intelligence, specifically for his development of factor analysis and the concept of a general intelligence factor, "g".

Intelligence

The ability to acquire, understand, and apply knowledge and skills, and to adapt to new situations.

Stanford-Binet

An individually administered intelligence test that was revised from the original Binet-Simon Scale, measuring five factors of cognitive ability.

Mental Age

A measure of an individual's cognitive ability compared to the average cognitive ability for their age group.