Which of the Following Events Must Cause Equilibrium Price to Fall

question 81

Multiple Choice

Which of the following events must cause equilibrium price to fall?

• A)demand increases and supply decreases
• B)demand and supply both decrease
• C)demand decreases and supply increases
• D)demand and supply both increase

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Definitions:

Title

The legal right to own, use, or dispose of something, particularly property or intellectual property.

Security

A financial instrument representing an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Finance Lease

A type of lease agreement in which the lessee effectively obtains ownership of the asset by the end of the lease term, usually involving payment of the asset's full value over time.

Lessee

A person or entity who leases property or equipment from another, the lessor, under a lease agreement.