Suppose both the equilibrium price and quantity rise for a particular product. Which of the following best explains this situation?
A) Supply and demand simultaneously increased and the shift in supply was greater than the shift in demand.
B) Supply and demand simultaneously increased and the shift in supply was less than the shift in demand.
C) Supply and demand simultaneously decreased and the shift in supply was greater than the shift in demand.
D) Supply and demand simultaneously decreased and the shift in supply was less than the shift in demand.
Correct Answer:
Verified
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A) generally convey
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Q213: Prices direct economic activity in a market
Q214: If there is a decrease in both
Q215: Assume that supply decreases slightly and demand
Q217: According to Adam Smith's invisible hand principle,
Q218: Adam Smith's invisible hand principle stresses
A) that
Q219: Which of the following is a major
Q220: Market prices are
A) conveyors of information.
B) determined
Q221: If the supply of a good increased,
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