Suppose There Is a Simultaneous Increase in Demand and Increase

question 366

Multiple Choice

Suppose there is a simultaneous increase in demand and increase in supply. Given this information, we know with certainty that

• A) both the equilibrium price and the equilibrium quantity will increase.
• B) the equilibrium price will increase, and the equilibrium quantity will increase.
• C) the equilibrium quantity will increase.
• D) the equilibrium price will increase.

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Definitions:

Physical Aggression

Behavior involving physical force intended to hurt, damage, or kill someone or something.

Investment Model

A model of long-term relationships that examines the ways that commitment, investment, and the availability of attractive alternative partners predict satisfaction and stability in relationships.

Evolutionary Theory

The theory that explains the diversity of life on Earth through the processes of natural selection and genetic mutation over time.

Social Exchange Theory

The view of social relationships as involving an exchange of goods, the objective of which is to minimize costs and maximize benefits.