Which of the Following Statements Is Correct

question 139

Multiple Choice

Which of the following statements is correct?

• A) When both demand and supply decrease, the quantity decreases and the price might rise, fall, or remain the same.
• B) When both demand and supply increase, the quantity decreases and the price might rise, fall, or remain the same.
• C) When both demand and supply increase, the price rises and the quantity might increase, decrease, or remain the same.
• D) When both demand and supply decrease, the quantity increases and the price might rise, fall, or remain the same.

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, affecting its liquidity.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health and operational efficiency.

Present Value

The calculation of the current value of a sum of money or stream of cash flows that is to be received in the future, discounted at a specific rate.

Dollar Outlays

The total amount of money spent or invested in a particular project, purchase, or endeavor, often used in budgeting and financial planning.