If the Demand Increases but Supply Decreases, Then

question 11

Multiple Choice

If the demand increases but supply decreases, then:

• A) these two effects cancel each other out and there is no change in the market equilibrium.
• B) the price will increase and the quantity will depend on the magnitude of shifts of both demand and supply curves.
• C) the price will increase and the quantity will decrease.
• D) the price will increase and the quantity will increase.
• E) the price will decrease and the quantity will depend on the magnitude of shifts.

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Definitions:

Preferences

Denotes individual likings or choices toward certain options over others, often influenced by personal values, experiences, or societal trends.

Minimized

reduced to the smallest possible amount or degree.

Routinization

The process of making an action or series of actions standard and routine within an organization, thereby increasing efficiency.

Creativity Undermine

Occurs when conditions or attitudes negatively impact the ability or willingness of individuals or teams to generate innovative ideas or solutions.