When There Is a Decrease in Supply, All Else Held

question 69

Multiple Choice

When there is a decrease in supply, all else held equal,

• A)equilibrium price falls, demand increases, and equilibrium quantity increases.
• B)equilibrium price falls, demand does not change, and equilibrium quantity increases.
• C)equilibrium price rises, quantity demanded decreases, and equilibrium quantity decreases.
• D)equilibrium price falls, quantity demanded decreases, and equilibrium quantity decreases.
• E)equilibrium price rises, demand does not change, and equilibrium quantity increases.

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Definitions:

Accrual of Interest

The recording of interest that has been earned but not yet paid or received in cash.

Stockholders' Equity

The owners' equity in a corporation, representing the residual assets of the company that would be due to stockholders after discharging all liabilities.

Long-Term Debt

Debt that is due for repayment more than one year in the future, often used for significant investments or acquisitions.

Currently Maturing

Refers to liabilities or obligations that are due to be paid or settled within the next fiscal year.