Which of the Following Statements Is Correct for a Market

question 26

Multiple Choice

Which of the following statements is correct for a market with an upward- sloping supply curve and a downward- sloping demand curve?

• A)If the demand curve shifts left and the supply curve shifts left, equilibrium price will fall.
• B)If the demand curve shifts right and the supply curve shifts left, equilibrium price will rise.
• C)If the demand curve shifts left and the supply curve shifts right, equilibrium price will rise.
• D)If the supply curve shifts right and the demand curve remains constant, equilibrium price will rise.
• E)If the supply curve shifts left and demand remains constant, equilibrium quantity will rise.

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Definitions:

Equipment

Tangible assets used in operations, such as machinery or office machines, which have a useful life longer than a year.

Straight-Line Method

A depreciation method that allocates an equal amount of the cost of an asset to each year of its useful life.

Fully Depreciated

A term used when a fixed asset has been depreciated to its salvage value and no longer carries a cost on the balance sheet except its possible residual value.

Loss on Disposal

Represents the financial loss a company incurs when it disposes of an asset for less than its carrying value.