Suppose the Number of Buyers in a Market Increases and a Technological

question 171

Multiple Choice

Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the market?

• A)Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.
• B)Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous.
• C)Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
• D)Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.

---

Definitions:

Contract Law

The body of law that regulates the formation, performance, and enforcement of contracts between parties.

Sales Differ

Refers to the variation or discrepancy in sales outcomes, often used to analyze or report on different performance metrics.

Parol Evidence Rule

A legal principle that prevents parties to a written contract from presenting extrinsic evidence of terms of the contract that contradict, modify, or vary contractual terms agreed to in writing.

Common Law

A body of unwritten laws based on legal precedents established by the courts, as opposed to statutory laws written by legislative bodies.