An Increase in Demand Causes A

question 205

Multiple Choice

An increase in demand causes a:

• A) temporary shortage at the old equilibrium price and a higher new equilibrium price and quantity.
• B) permanent shortage, leaving the equilibrium price and quantity unchanged.
• C) temporary surplus at the old equilibrium price and a lower equilibrium price and quantity.
• D) temporary shortage at the old equilibrium price, a higher new equilibrium price, and a lower new equilibrium quantity.

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Definitions:

Earthworms

Invertebrate animals with a long, segmented body, living in soil and contributing to soil fertility through their activity.

Scorpions

Arthropods belonging to the class Arachnida, characterized by their venomous sting, used to kill prey and for defense.

Arthropod

Invertebrates, with an exoskeleton and jointed appendages, such as crustaceans and insects.

Lobsters

Marine crustaceans with a hard shell, long antennae, and ten legs, known for being a popular seafood.