If Equilibrium Price Increases While Equilibrium Quantity Decreases, Then We

question 126

Multiple Choice

If equilibrium price increases while equilibrium quantity decreases, then we know that:

• A) market demand has increased.
• B) market demand has decreased.
• C) market supply has decreased.
• D) market supply has increased.

---

Definitions:

Slope

The slope is the measure of the steepness or incline of a line, typically described as the ratio of the rise over the run between two points on the line.

Isocost Line

A line that represents all combinations of inputs which have the same total cost.

Capital

Wealth in the form of money or other assets owned by a person or organization or available for purposes such as starting a company or investing.

Labor

Pertains to the utilization of human labor, encompassing both physical and intellectual efforts, in the creation of products and services.