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:

Savings

Money set aside for future use, often held in bank accounts, investments, or other financial instruments.

Moving Expense Deduction

A tax deduction that was available to taxpayers who relocated for a new job or business location, subject to certain IRS guidelines (currently suspended except for active military under certain conditions).

Taxpayers

Individuals or entities that are required to pay taxes to a federal, state, or local government based on earned income, property ownership, or consumption.

Health Savings Account

An account that allows individuals with high-deductible health plans to save money pre-tax for use on qualified medical expenses.