Which of the Following Will Definitely Result in an Increase

question 2

Multiple Choice

Which of the following will definitely result in an increase in the equilibrium price?

• A)a decrease in both demand and supply
• B)a decrease in demand combined with an increase in supply
• C)an increase in both demand and supply
• D)an increase in supply combined with a decrease in demand
• E)an increase in demand combined with a decrease in supply

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Definitions:

Liability

It's a financial obligation or amount owed by a business to creditors, typically a form of borrowing.

Fair Value

A valuation process to determine the appropriate value of assets or liabilities, based on current market conditions rather than historical cost.

Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its net identifiable assets, representing the value of the company's brand, customer relationships, employee relations, and patents.

Fair Value Enterprise Method

is a valuation approach used to measure the value of a business by assessing the present value of its expected future earnings.