Assuming That the Demand and Supply of a Good Have

question 1

Multiple Choice

Assuming that the demand and supply of a good have moved in the same direction, and by the same amount, the new equilibrium would represent:

• A)an increase in price and an increase in quantity exchanged.
• B)no change in price and an increase in quantity exchanged.
• C)a decrease in price and a decrease in quantity exchanged.
• D)no change in price and a decrease in quantity exchanged.
• E)no change in price, and an indeterminate change in quantity exchanged.

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Definitions:

Motor Homes

Recreational vehicles equipped with living quarters and amenities found in a home, used for traveling or camping.

Retailing

Retailing refers to the selling of goods and services directly to consumers for personal, non-business use.

Downward-Sloping

Refers to a line or curve on a graph that moves from the upper left to the lower right, indicating a negative relationship between two variables.

Demand Curve

A chart that displays the connection between a product's price and the amount consumers are willing to purchase.