If the Demand Curve for Bottled Water Shifts Rightward and the Supply

question 366

Multiple Choice

If the demand curve for bottled water shifts rightward and the supply curve of bottled water shifts leftward, the equilibrium

• A) quantity of bottled water definitely decreases.
• B) price of bottled water definitely decreases.
• C) price of bottled water definitely increases.
• D) quantity of bottled water definitely increases.

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Definitions:

Straight-Line Amortization

A technique for distributing the cost of an asset uniformly throughout its period of use.

Callable

A feature of certain bonds or securities that allows the issuer to buy back or "call" the security before its maturity date, often at a predetermined price.

Reacquisition

The process of a company buying back its own shares or bonds from investors.

Refunding

The process of replacing an old debt with a new one, usually with better terms, such as a lower interest rate.