Which of the Following Is False

question 22

Multiple Choice

Which of the following is false?

• A) If demand increases and supply decreases, equilibrium price will go up.
• B) If demand remains constant and supply increases, equilibrium price will go down.
• C) If demand decreases and supply increases, equilibrium price will rise.
• D) If supply is unchanged and demand decreases, equilibrium price will fall.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or service activity, such as raw materials and labor hours.

Expected Total

The projected sum or outcome of a particular set of data or financial transactions over a specified period.

Dollar Sales

The total value of sales measured in monetary terms over a specific period of time.

Pretax Income

The amount of income earned by a business before taxes are deducted.