If Demand Increases While Supply Simultaneously Decreases, Then the Equilibrium

question 143

Multiple Choice

If demand increases while supply simultaneously decreases, then the equilibrium quantity

• A) always increases.
• B) always decreases.
• C) can never change.
• D) none of the above

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Definitions:

Shares

Portions of ownership in a corporation or financial asset available to investors.

Market Value

Market value is the current price at which an asset or service can be bought or sold in a marketplace, reflecting the value that market participants assign to it.

Shares

Represent units of ownership interest in a corporation or financial asset, providing a means for corporations to raise capital.

Rights Offering

An offering where existing shareholders are given the right to purchase additional shares at a discounted price before the new shares are offered to the public.