Consider a Market That Is in Equilibrium

question 66

Multiple Choice

Consider a market that is in equilibrium.If it experiences a decrease in demand,what will happen? The demand curve will shift to the:

• A) left, and the equilibrium price and quantity will rise.
• B) left, and the equilibrium price will increase and the equilibrium quantity will decrease.
• C) left, and the equilibrium price and quantity will fall.
• D) right, and the equilibrium price and quantity will fall.

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Definitions:

Economic Picture

A comprehensive overview of the current state and conditions of an economy, encompassing various indicators such as GDP, employment rates, and inflation.

Protective Tariffs

A tax imposed on imported goods to make domestic products more competitive.

Economic Growth

An enhancement in the output of goods and services by an economy, measured from one time period to the next.

Budget Surpluses

Situations where income or revenues exceed expenditures in a given budget period, implying financial health and the possibility of investment or debt reduction.