Following Adjustments to a New Equilibrium in a Market, the Equilibrium

question 50

Multiple Choice

Following adjustments to a new equilibrium in a market, the equilibrium quantity remains unchanged, but the market clearing price is now lower. Which of the following could definitely have caused this outcome?

• A) Demand and supply both increased.
• B) Demand and supply both decreased.
• C) Demand increased, and supply decreased.
• D) Demand decreased, and supply increased.

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Definitions:

Sales Details

Specific information related to the quantity, price, and conditions of a product or service sale.

Value of K

In various contexts, it represents a specific variable or parameter value, such as the number of nearest neighbors in KNN algorithm or clusters in K-means clustering.

Mean Absolute Deviation

A measure of variability that averages the absolute deviations of individual observations from a central point, typically the mean.

Sales Details

Specific information related to the volume, transactions, and characteristics of sales within a business or market.