If Both Supply and Demand Simultaneously Decrease

question 226

Multiple Choice

If both supply and demand simultaneously decrease

• A) the market clearing price definitely rises, and the equilibrium quantity definitely falls.
• B) the market clearing price definitely rises, and the effect on the equilibrium quantity is indeterminate.
• C) the market clearing price definitely falls, and the effect on the equilibrium quantity is indeterminate.
• D) the effect on the market clearing price is indeterminate, and the equilibrium quantity definitely falls.

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Definitions:

Forest

A forest is a large area dominated by trees and underbrush, providing habitat for a wide range of flora and fauna and playing a crucial role in the earth's ecosystem.

Bilingual Speakers

Individuals who are proficient in using two languages.

Brain Areas

Regions within the brain specialized for various functions such as memory, emotion, and sensory processing.

Lateralized

Pertaining to activities or functions that are dominantly controlled by one side of the brain.