Imagine a Free Market in Equilibrium

question 201

Multiple Choice

Imagine a free market in equilibrium. After a sudden increase in supply (but before the price can adjust) , the market experiences a:

• A) shortage.
• B) surplus.
• C) no change.
• D) new equilibrium.

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Definitions:

Digging Sticks

Simple tools used since ancient times for breaking the ground for planting seeds or for digging up roots and tubers.

Plows

Agricultural tools used for turning over the soil to prepare it for planting seeds by cutting, lifting, and turning over the soil.

Irrigation

The artificial application of water to land to assist in the growth of crops.

Fertilizer

A chemical or natural substance added to soil or land to increase its fertility and enhance plant growth.