When Demand Increases, the Equilibrium Price and the Equilibrium Quantity

question 419

Multiple Choice

When demand increases, the equilibrium price and the equilibrium quantity .

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

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Definitions:

Time Value

The principle that having money in the present is more valuable than having the same sum in the future because of its ability to generate earnings.

Capital Investment Analysis

The process of assessing the financial viability of a long-term investment project or proposal, evaluating potential returns and risks.

Money

A medium of exchange that facilitates trade, typically issued by a government as legal tender.

Salvage Value

The anticipated market value of an asset at the conclusion of its serviceable lifespan.