If Both Demand and Supply Rise,which of the Following Must

question 40

Multiple Choice

If both demand and supply rise,which of the following must be true?

• A) The equilibrium price will increase.
• B) The equilibrium price will decrease.
• C) The equilibrium price will not change.
• D) The change in the equilibrium price is indeterminate.

---

Definitions:

Required Discount Rate

The minimum expected rate of return on an investment, used in the discounting process of present value calculations.

Profitability Index

A financial tool used to determine the desirability of an investment or project by dividing the present value of future cash flows by the initial investment cost.

Rate Of Return

The gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.

Profitability Index

A financial tool used to determine the desirability of an investment or project, calculated by dividing the present value of future cash flows by the initial investment cost.