It Is True That the Equilibrium Quantity Will Always Go

question 118

Multiple Choice

It is true that the equilibrium quantity will always go up if supply:

• A) and demand both increase.
• B) increases and demand decreases.
• C) and demand both decrease.
• D) decreases and demand remains unchanged.

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Definitions:

Holding Costs

Expenses incurred from maintaining and storing inventory, such as warehousing costs, insurance, and deterioration losses.

Inventory Quantity

The total number of units of a specific product or category of products that are held in stock by a business at a given time.

Lot

A distinct batch or quantity of material bought or sold, often considered as a single unit in stock trading or production.

Purchase Price

The cost at which something is bought, which may include additional fees or taxes involved in the transaction.