In Which of the Following Situations Will the Effect Upon

question 240

Multiple Choice

In which of the following situations will the effect upon the equilibrium price of wheat be indeterminate?

• A)supply decreases and demand increases
• B)demand decreases and supply increases
• C)demand remains constant and supply increases
• D)supply decreases and demand decreases
• E)supply remains constant and demand increases

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Definitions:

Quantity

The amount or number of a material or immaterial good considered as a unit or total.

Average Total Costs

The total cost of production (including both fixed and variable costs) divided by the number of units produced, representing the average expense per unit.

Marginal Cost

The price associated with the creation of one more unit of a product or service.

Average Total Cost

The per-unit cost of production, calculated by dividing the total cost of production by the quantity of output produced.