Consider a Market That Is in Equilibrium

question 26

Multiple Choice

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

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

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Definitions:

Implications

The possible effects, outcomes, or repercussions that may result from a specific action, decision, or event.

Balance

The state where different elements are in the correct proportions or positions; in a work-life context, it often refers to the equilibrium between professional and personal life.

Hierarchy of Importance

A ranking system that prioritizes tasks, goals, or values based on their significance or urgency.

Motivation Theories

Psychological theories that aim to explain what drives individuals to initiate, direct, and persist in behaviors aimed at achieving a goal.