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- Subject
- Marketeconomics-mcqs › market
- Published
- 31 May 2019
- Last updated
- 28 May 2026
If both the supply and demand for personal computers increase, but the supply grows by a larger margin than demand, what is the expected outcome in the personal computer market?
Multiple choice question for Market. Select an option, then review the explanation below.
Explanation
When supply increases more than demand, the available quantity in the market rises, pushing the equilibrium quantity higher. However, the larger supply shift leads to a reduction in price, causing the equilibrium price to fall.
More Market MCQs
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- 1.Broadcasting firms use satellite TV subscriptions and signal detection tools primarily to combat which issue?
- 2.Which of the following is a classic example of a public good?
- 3.Which of the following factors can lead to market failure?
- 4.When a neighbor burns yard debris and smoke enters your home, what type of externality does this represent?
- 5.Why is a competitive equilibrium considered Pareto efficient?