When Supply Decreases There Is a ______ at the Old

question 188

Multiple Choice

When supply decreases there is a ______ at the old equilibrium price, which puts ______ pressure on price until the market reaches the new equilibrium.

• A) surplus; downward
• B) surplus; upward
• C) shortage; upward
• D) shortage; downward

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Definitions:

Defer Judgment

The practice of postponing evaluation or critical thinking about ideas or situations in order to explore all possibilities without bias.

Osborn

Refers to Alex Osborn, the advertising executive and author who coined the term "brainstorming" and developed techniques to foster creative thinking.

Lateral Thinking

A problem-solving method that encourages creativity and looking at situations from different perspectives.

Perceiving and Interpreting

The cognitive processes through which individuals notice and make sense of environmental stimuli, events, or situations.