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:

Portable

Often used to describe technology or skills that can be easily transferred or utilized in different contexts or locations.

Flexible Benefit Programs

Employee benefit plans that allow individuals to choose from a range of options to create a benefits package tailored to their own needs and circumstances.

Administrative Costs

Expenses incurred by an organization that are not directly tied to a specific business function such as manufacturing, production, or sales. These can include salaries of senior executives, office supplies, and utilities.

Employee Participation

The involvement of workers in decision-making processes within an organization, aimed at improving engagement, morale, and productivity.