Assume That Supply Increases Slightly and Demand Increases Greatly

question 46

Multiple Choice

Assume that supply increases slightly and demand increases greatly.Which of the following will happen?

• A)equilibrium price will fall and equilibrium quantity will rise
• B)equilibrium price will rise and equilibrium quantity will fall
• C)equilibrium price will rise and equilibrium quantity will rise
• D)equilibrium price will fall and equilibrium quantity will fall
• E)neither equilibrium price nor equilibrium quantity will change

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Definitions:

Descriptive Theories

Theories that explain and understand phenomena by describing patterns, behaviors, and relationships.

Effective

The degree to which something is successful in producing a desired or intended result; efficiency in achieving goals.

Influence Tactics

Methods or strategies used by individuals or leaders to persuade or guide the behavior and attitudes of others toward desired outcomes.

Power-Influence Approach

A theory in leadership that focuses on how individuals use power and influence to affect the behavior of others.