Suppose Improvements in Technology Cause the Supply of Natural Gas

question 31

Multiple Choice

Suppose improvements in technology cause the supply of natural gas to increase and at the same time the demand for natural gas increases. What are we sure of?

• A) Both equilibrium price and quantity increase.
• B) Equilibrium price decreases.
• C) Equilibrium price increases.
• D) Equilibrium quantity decreases.
• E) Equilibrium quantity increases.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time, resulting in net income or loss.

Limited Liability

A legal structure for a business where the owners' personal assets are protected from the company's debts and liabilities.

Shareholders

Individuals or entities that own shares in a corporation, giving them certain rights such as voting on important company decisions.

Stockholders' Equity

Represents the owners' interest in a company, calculated as the difference between total assets and total liabilities.