If Demand Increases and Supply Decreases

question 69

Multiple Choice

If demand increases and supply decreases,

• A)equilibrium price will fall and equilibrium quantity will rise
• B)equilibrium price and quantity will both rise
• C)equilibrium quantity will rise; equilibrium price will either rise or fall
• D)equilibrium price will fall; equilibrium quantity will either rise or fall
• E)equilibrium price will rise; equilibrium quantity will either rise, fall, or remain unchanged

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Definitions:

Regression

A defense mechanism leading an individual to revert to an earlier stage of development in response to stress or conflict.

Immaturity

A lack of development, whether in biological, emotional, or psychological realms, often resulting in childlike behavior in adults.

Psychoanalytic Theory

A theory of personality organization and the dynamics of personality development that guides psychoanalysis, developed by Sigmund Freud, focusing on unconscious motives and conflicts.

Superego

The part of the personality in Freudian psychoanalysis that is responsible for upholding moral standards and ideals acquired from parents and society, often in conflict with individual desires.