A Competitive Market Is in Equilibrium

question 111

Multiple Choice

A competitive market is in equilibrium.Then there is a decrease in demand and a decrease in supply.The equilibrium price ________,and the equilibrium quantity ________.

• A) rises; decreases
• B) perhaps changes but we can't say if it rises, falls, or stays the same; decreases
• C) falls; increases
• D) perhaps changes but we can't say if it rises, falls, or stays the same; increases
• E) rises; increases

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Definitions:

Vocational School

An educational institution that provides practical and skills-based training for specific careers or trades.

Budgets

Financial plans outlining expected revenues and expenditures for a specific period.

Activity Variances

Differences between planned activity costs and the actual costs incurred for those activities.

Cost Drivers

Factors that cause the cost of an activity or operation to increase or decrease, such as machine hours, labor hours, or the volume of production.