If Equilibrium Price Increases While Equilibrium Quantity Decreases, Then We

question 126

Multiple Choice

If equilibrium price increases while equilibrium quantity decreases, then we know that:

• A) market demand has increased.
• B) market demand has decreased.
• C) market supply has decreased.
• D) market supply has increased.

---

Definitions:

Parol Evidence Rule

A legal principle that prevents parties to a written contract from presenting extrinsic evidence of terms that would contradict, modify, or add to the written agreement.

Parol Evidence Rule

A legal principle that prevents parties in a contract dispute from presenting evidence of prior or contemporaneous agreements that would contradict the written terms of the contract.

Parol Evidence Rule

A legal principle that prevents parties in a dispute from presenting evidence of prior or contemporaneous agreements that contradict or modify the written terms of a final contract.

UCC 2-301

A provision under the Uniform Commercial Code (UCC) that emphasizes the importance of good faith in the performance or enforcement of contracts covered by the UCC.