It's Certain That the Equilibrium Price Will Fall When

question 15

Multiple Choice

It's certain that the equilibrium price will fall when:

• A) the supply curve and the demand curve both shift to the right.
• B) the supply curve shifts to the right and the demand curve shifts to the left.
• C) supply and demand both increase.
• D) supply decreases and demand stays the same.

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Definitions:

Capital Cost Allowance

Capital cost allowance is a tax deduction available in Canada for depreciable property, allowing businesses to write off the cost of assets over a period of time.

Cash Operating Costs

Expenses related directly to the operations of a business, excluding financing costs.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income levels, jurisdictions, and other factors.

WACC

The Weighted Average Cost of Capital is a metric that determines a firm's cost of capital by assigning proportional weights to each type of capital it uses.