When Both Supply and Demand Decrease,the Equilibrium Price

question 60

Multiple Choice

When both supply and demand decrease,the equilibrium price:

• A) increases and equilibrium quantity increases.
• B) is indeterminate and equilibrium quantity increases.
• C) decreases and equilibrium quantity is indeterminate.
• D) increases and equilibrium quantity is indeterminate.
• E) is indeterminate and equilibrium quantity decreases.

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Definitions:

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Regular practices or routines that are hard to give up and often performed unconsciously.

Automatic System

A type of processing that occurs with little to no conscious thought, often quick and intuitive.

Deliberate System

A cognitive process characterized by slow, logical, and conscious thinking, often involved in making well-thought-out decisions.

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An individual who believes that personal attributes, like intelligence or ability, are fixed and cannot be changed through effort.