We Observe a Market in Which the Price Has Risen

question 54

Multiple Choice

We observe a market in which the price has risen and the quantity sold has risen as well.This could be caused by a(n) :

• A)increase in demand.
• B)increase in supply.
• C)decrease in demand.
• D)decrease in supply.

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Definitions:

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) in a balance sheet is represented as a proportion of the total account.

Common Size Analysis

A financial analysis technique that expresses each line item on a financial statement as a percentage of a base amount for easy comparison across periods or companies.

Trend Analysis

The practice of collecting information and attempting to spot a pattern or trend in the data, often used in financial analysis.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.