If the Demand for a Product Remains the Same and the Supply

question 193

Multiple Choice

If the demand for a product remains the same and the supply falls,

• A) the market clearing price will fall and the equilibrium quantity will rise.
• B) the market clearing price will rise and the equilibrium quantity will fall.
• C) both the market clearing price and the equilibrium quantity will fall.
• D) both the market clearing price and the equilibrium quantity will rise.

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Definitions:

Representation

In law, a statement of fact made to induce someone into a contract or a presentation by one party in a lawsuit on behalf of another.

Tort

An action that causes harm or injury to another person.

Estoppel

A legal principle that prevents someone from arguing something contrary to a claim they previously made or an action they took.

Authority

The right or power to act or to make a decision.