What Happens to the Equilibrium Price and Equilibrium Quantity of a Good

question 113

Multiple Choice

What happens to the equilibrium price and equilibrium quantity of a good if both the producers and the consumers of that good expect its price to be higher in the future?

• A) The equilibrium price will go up and equilibrium quantity will go up.
• B) The equilibrium price will go down and equilibrium quantity will be indeterminate.
• C) The equilibrium price will be indeterminate and equilibrium quantity will go up.
• D) The equilibrium price will go up and equilibrium quantity will be indeterminate.
• E) The equilibrium price will be indeterminate and equilibrium quantity will go down.

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Definitions:

Hemoglobin

A protein in red blood cells responsible for carrying oxygen throughout the body.

Venipuncture

is the process of puncturing a vein with a needle to draw blood for testing, to give medication, or to start an intravenous line.

Femoral vein

A major blood vessel in the thigh and leg that returns oxygen-depleted blood back to the heart.

Inguinal veins

Blood vessels located in the inguinal (groin) area that drain blood from the lower limbs back to the heart.