If Market Supply Increases

question 61

Multiple Choice

If market supply increases:

• A) equilibrium price and quantity will both increase.
• B) equilibrium price and quantity will both decrease.
• C) equilibrium price will increase but equilibrium quantity will decrease.
• D) equilibrium price will decrease but equilibrium quantity will increase.

---

Definitions:

Ultimatum Game

A game in economic experiments where one player proposes how to divide a sum of money with another, who can accept or reject the proposal, where rejection means neither gets anything.

Ultimatum Game

A game in experimental economics where one participant proposes a division of a sum of money, and the other can accept or reject the proposal, with rejection meaning neither receives anything.

Behavioral Economists

Investigators who look into how psychological, cognitive, emotional, cultural, and social variables play a role in the economic decisions of individuals and organizations.

Ultimatum Game

A game in economic experiments where one player proposes a division of a sum of money and the second player can accept or reject the proposal. If rejected, both players receive nothing.