Given a Positively Sloped Supply Curve,a Rise in the Demand

question 37

Multiple Choice

Given a positively sloped supply curve,a rise in the demand for that commodity causes

• A)a shortage of other goods.
• B)a fall in sales of that commodity.
• C)an increase in both the equilibrium price and the equilibrium quantity exchanged.
• D)a decrease in the equilibrium price and an increase in the equilibrium quantity exchanged.
• E)a decrease in both the equilibrium price and the equilibrium quantity exchanged.

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Definitions:

Uncollectible Account

Refers to receivables that a company has deemed impossible to collect, recognizing it as a bad debt expense.

Repayment of Loan

The process of paying back borrowed money to the lender, typically involving periodic payments of principal and interest over a set term.

Accrual Basis

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.

Accounts Payable

Liabilities of a business that are due to creditors within a short period of time, usually for the purchase of goods and services.