When Both Curves Shift

question 126

Multiple Choice

When both curves shift:

• A) equilibrium price is always indeterminate.
• B) equilibrium quantity is always indeterminate.
• C) equilibrium price and equilibrium quantity are indeterminate.
• D) equilibrium price OR equilibrium quantity is indeterminate, but we can't predict which one.
• E) neither equilibrium price nor equilibrium quantity is indeterminate.

---

Definitions:

Assets

Resources owned by a company that provide future economic benefits.

Liabilities

Financial obligations or debts that an entity owes to others, which must be settled over time through the transfer of economic benefits.

Surrenders Control

The action of relinquishing authority, power, or ownership over an entity, asset, or decision-making process to another party.

Transfer of Receivables

This refers to the process where a company assigns the right to collect cash from its outstanding invoices to another party, often in exchange for immediate cash.