When Demand Decreases and Supply Does Not Change, the Equilibrium

question 472

Multiple Choice

When demand decreases and supply does not change, the equilibrium price and the equilibrium quantity .

• A) rises; increases
• B) rises; decreases
• C) falls; increases
• D) falls; decreases

Identify the correct method for recording additional share acquisitions in consolidated financial statements.

Analyze the impact of additional share purchases on goodwill and common shares balance in the consolidated statement of financial position.

Calculate the adjustment to equity required for a second acquisition of shares using the entity method.

Understand the treatment of original ownership percentages upon acquiring additional shares in a subsidiary.

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Definitions:

Price Ceilings

Price ceilings are regulatory measures that set a maximum price that can be charged for certain goods or services, with the goal of ensuring affordability.

Price Floors

Minimum prices set by the government for certain goods and services, aimed at preventing prices from dropping too low.

Distorted

Refers to a situation where economic actions or outcomes are twisted or skewed due to various factors, such as government intervention or market anomalies.

Rationing

The controlled distribution of scarce resources, goods, or services, often implemented during shortages to ensure equitable distribution among all individuals.