Consider a Market That Is in Equilibrium

question 12

Multiple Choice

Consider a market that is in equilibrium.If it experiences both a decrease in demand and a decrease in supply,what can be said of the new equilibrium? The equilibrium:

• A) price and quantity will both fall.
• B) quantity will definitely fall, while the equilibrium price cannot be predicted.
• C) price will definitely fall, while the equilibrium quantity cannot be predicted.
• D) price and quantity will both rise.

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Definitions:

Ego-Defensive Function

A mechanism in Freudian psychology where an individual’s ego protects itself against social anxieties, threats, or inferior feelings by constructing defenses or excuses.

Katz

Refers generally to theories or concepts developed by Daniel Katz regarding attitudes and motivation in organizational settings.

Lifestyle Analyses

The study of consumers' buying habits and preferences, often used in market research to categorize consumers into different segments based on their lifestyle choices.

Value-Expressive Function

The role of beliefs, purchases, or behaviors in expressing an individual's values, self-concept, and social identity.