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:

Measure of Damages

A method used in legal contexts to calculate the amount of compensation owed to a party as a result of loss or injury.

United Nations Convention

An international treaty or agreement formulated under the auspices of the United Nations, pertaining to various global issues.

International Sales Contract

A legally binding agreement between parties from different countries for the sale and purchase of goods.

Market Price

The present cost at which a service or asset is available for purchase or sale on the market.