Given a Positively Sloped Supply Curve,a Rise in the Demand

question 37

Multiple Choice

Given a positively sloped supply curve,a rise in the demand for that commodity causes

• A)a shortage of other goods.
• B)a fall in sales of that commodity.
• C)an increase in both the equilibrium price and the equilibrium quantity exchanged.
• D)a decrease in the equilibrium price and an increase in the equilibrium quantity exchanged.
• E)a decrease in both the equilibrium price and the equilibrium quantity exchanged.

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Definitions:

Liquidity

This concept describes how easily an asset or security can be converted into ready cash without affecting its market price.

Asset Management

The approach to build, operate, preserve, and trade assets in a financially efficient manner.

Debt Management

The process of overseeing and handling the debt obligations of an individual or organization, including repayment strategies and structuring.

Return on Total Assets

A profitability ratio that measures the net income earned on total assets available within a company.