Figure 3-8 -A Decrease in the Equilibrium Quantity for a Product Will

question 187

Multiple Choice

Figure 3-8
-A decrease in the equilibrium quantity 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 a decrease in demand for the product.
• C) when there is an increase in supply and a decrease in demand for the product.
• D) when there is a decrease in demand and a decrease in the number of firms producing the product.

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Definitions:

Variable Costs

Outlays that shift directly in line with the magnitude of output or production.

Production

The creation of goods and services using labor, technology, and inputs of raw materials to meet consumer demand.

Fixed Costs

Fixed costs that are unaffected by the amount of goods produced or sold, like rent, wages, and insurance charges.

Rent

A periodic payment made for the use of land, a building, or other property.