If Supply Decreases Along a Given Demand Curve

question 225

Multiple Choice

If supply decreases along a given demand curve,

• A)an excess quantity demanded will be created, increasing the equilibrium price and causing equilibrium quantity to fall
• B)an excess quantity supplied will be created, lowering the equilibrium price and causing equilibrium quantity to rise
• C)an excess quantity demanded will be created, raising the equilibrium price and quantity
• D)an excess quantity supplied will be created, lowering the equilibrium price and quantity
• E)price will fall, shifting the demand curve outward, raising the equilibrium quantity

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Definitions:

Cognitive Learning

The acquisition of mental information, whether by observing events, by watching others, or through language.

Classical Conditioning

A learning method characterized by repeatedly associating two stimuli; over time, the response once elicited by the second stimulus is induced by the first stimulus solely.

Observing Events

The act of attentively watching occurrences or phenomena, often for the purpose of gathering data or understanding something better.

Learned Associations

The process by which individuals connect two stimuli or events through repeated experience, leading to a change in behavior.