As a Result of an Increase in the Supply of a Good

question 327

Multiple Choice

As a result of an increase in the supply of a good, the equilibrium quantity and the equilibrium price _.

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

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Definitions:

Marketable Securities

Financial instruments that can be easily converted into cash, such as stocks, bonds, or treasury bills, typically held for short-term investment purposes.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a particular period, indicating the efficiency of inventory management.

Days' Sales

A financial metric estimating the number of days required to convert a company's inventory into sales, also known as inventory turnover period.

Cost Of Goods Sold

The expenses directly associated with manufacturing products that a company sells.