A Decrease in Supply with No Change in Demand Will

question 12

Multiple Choice

A decrease in supply with no change in demand will lead to _____ in equilibrium quantity and _____ in equilibrium price.

• A)an increase; an increase
• B)an increase; a decrease
• C)a decrease; an increase
• D)a decrease; a decrease

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Definitions:

Installment

A method of paying for goods or services or the repayment of a loan in parts, typically on a monthly basis, over a period of time.

Cost Recovery

The process of regaining the value of an investment or expense, often through depreciation, amortization, or directly recouping expenses.

Gross Profit

The financial metric that represents the difference between revenue and the cost of goods sold (COGS) before deducting overhead, payroll, taxation, and interest payments.

Net Sales

The revenue a company earns from sales after subtracting the money refunded for returns, compensation for damaged or missing items, and any discounts offered.