Assume a Competitive Market Is in Equilibrium

question 159

Multiple Choice

Assume a competitive market is in equilibrium.There is an increase in demand,but no change in supply.As a result the equilibrium price ________,and the equilibrium quantity ________.

• A) rises; increases
• B) rises; does not change
• C) falls; does not change
• D) falls; decreases
• E) falls; increases

---

Definitions:

Bureau of Labor Statistics

A unit of the United States Department of Labor that is responsible for collecting and analyzing important economic data, including employment and unemployment statistics.

Unemployed

Individuals who are capable of working and actively seeking employment but are unable to find a job.

Cyclical Unemployment

Unemployment that results from economic downturns or recessions, where there is insufficient demand for labor.

Bureau of Labor Statistics

A U.S. government agency that collects and analyses critical economic information, particularly employment and price statistics.