Suppose You Observe That the Price of a Good Increases

question 205

Multiple Choice

Suppose you observe that the price of a good increases and that the quantity of this good sold also increases. If only the demand curve or the supply curve shifts this suggests that

• A) supply increased over time while demand remained the same.
• B) supply decreased over time while demand remained the same.
• C) demand increased over time while supply remained the same.
• D) demand decreased over time while supply remained the same.

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Definitions:

Puritanism

A movement within the Church of England aiming at purifying the church of Roman Catholic practices, emphasizing predestination, and leading a godly life.

Calvinism

A major branch of Protestantism that follows the theological teachings and principles of John Calvin, emphasizing the sovereignty of God, predestination, and the authority of the Bible.

Continental

Referring to the main continent of Europe, often used in the context of geographic descriptions, continental climates, or the "continental system" implemented by Napoleon to blockade British trade.

Castilian Export Economy

Refers to the historical economic model of the Castile region of Spain, focusing on exporting goods, especially during the 16th and 17th centuries.