Which of the Following Events Must Cause Equilibrium Quantity to Fall

question 30

Multiple Choice

Which of the following events must cause equilibrium quantity 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:

Start-Up Costs

Expenses incurred during the process of establishing a new business or project.

One-Time Activities

Non-recurring events or transactions that do not form part of the regular, ongoing operations of a business.

New Facility

A newly constructed or established building or infrastructure intended for a specific use or service.

Deferred Payment

A payment arrangement that allows the payer to make the payment at a future date, often after receiving the goods or services.