An Increase in Demand and a Decrease in Supply Occur

question 147

Multiple Choice

An increase in demand and a decrease in supply occur in a market. What happens to the equilibrium price and quantity?

• A) The equilibrium price decreases; the change in the equilibrium quantity is uncertain.
• B) The equilibrium price decreases; the equilibrium quantity increases.
• C) The equilibrium price increases; the change in the equilibrium quantity is uncertain
• D) The equilibrium price increases; the equilibrium quantity decreases.

---

Definitions:

OM Strategies

Refers to the approaches and methods implemented in Operations Management to efficiently produce goods and services.

Over Capacity

A situation where a facility produces more goods or services than currently needed, leading to inefficiency and increased costs.

Dreamliner 787

The Dreamliner 787 is a long-range, wide-body, twin-engine jet airliner developed by Boeing, known for its fuel efficiency and passenger comfort features.

International Business

A firm that engages in cross-border transactions.