Suppose That Demand for a Good Decreases And,at the Same

question 56

Multiple Choice

Suppose that demand for a good decreases and,at the same time,supply of the good decreases.What would happen in the market for the good?

• A)Equilibrium price would decrease,but the impact on equilibrium quantity would be ambiguous.
• B)Equilibrium price would increase,but the impact on equilibrium quantity would be ambiguous.
• C)Equilibrium quantity would decrease,but the impact on equilibrium price would be ambiguous.
• D)Equilibrium quantity would increase,but the impact on equilibrium price would be ambiguous.

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Definitions:

Hierarchical System

A hierarchical system is an organizational structure where entities are ranked according to levels of authority, from highest to lowest.

Bureaucracy

An organizational structure characterized by standardized procedures, hierarchical divisions, and a clear set of rules and regulations to manage large organizations.

Network Structures

The arrangement and interconnection of elements within a network, defining how they communicate and cooperate.

Overheads

The ongoing expenses of operating a business that are not directly attributed to creating a product or service, such as rent, utilities, and administrative costs.