If the Demand for a Product Rises and the Supply

question 156

Multiple Choice

If the demand for a product rises and the supply stays the same

• A) the market clearing price will fall and the equilibrium quantity will rise.
• B) the market clearing price will rise and the equilibrium quantity will fall.
• C) both the market clearing price and the equilibrium quantity will fall.
• D) both the market clearing price and the equilibrium quantity will rise.

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Definitions:

Threshold

The minimum level of stimulus intensity required for a stimulus to be detected.

Intensity

The amount of energy in a light or sound wave, which we perceive as brightness or loudness, as determined by the wave’s amplitude.

Myelin Sheath

A fatty layer that surrounds nerve fibers and enhances the speed of electrical signal transmission in the nervous system.

Neural Transmission

The process by which nerve cells communicate with each other through electrical and chemical signals.