Holding Demand Constant, a Reduction in Supply Leads to

question 122

Multiple Choice

Holding demand constant, a reduction in supply leads to

• A) lower prices and higher quantity demanded.
• B) lower prices and lower quantity demanded.
• C) higher prices and higher quantity demanded.
• D) higher prices and lower quantity demanded.

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Definitions:

Unenforceable

A term describing a contract or clause that cannot be legally upheld or compelled by a court.

Unlicensed Contractor

An individual or company that performs trade or service work without the necessary legal authorization or permits.

Enforceable

Describes a legal agreement or contract that can be upheld or compelled by law or by a court.

Covenant Not To Compete

A contractual promise to refrain from competing with another party for a certain period of time and within a certain geographic area. Although covenants not to compete restrain trade, they are commonly found in partnership agreements, business sale agreements, and employment contracts. If they are ancillary to such agreements, covenants not to compete will normally be enforced by the courts unless the time period or geographic area is deemed unreasonable.