Suppose That Demand for a Good Decreases And,at the Same

question 56

Multiple Choice

Suppose that demand for a good decreases and,at the same time,supply of the good decreases.What would happen in the market for the good?

• A)Equilibrium price would decrease,but the impact on equilibrium quantity would be ambiguous.
• B)Equilibrium price would increase,but the impact on equilibrium quantity would be ambiguous.
• C)Equilibrium quantity would decrease,but the impact on equilibrium price would be ambiguous.
• D)Equilibrium quantity would increase,but the impact on equilibrium price would be ambiguous.

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Definitions:

Mass Media

Various forms of communication channels through which news, entertainment, education, data, or promotional messages are disseminated to the public.

Rolodex Syndrome

The reliance on a network of contacts or an informal list of professional or personal connections to gain business advantages or access to information, sometimes criticized for promoting exclusivity.

Information Superhighway

A metaphor describing the global network of information and communication technology infrastructure, particularly the internet, facilitating vast and speedy information exchange.