If the Number of Demanders for Electric Cars Increases at the Same

question 174

Multiple Choice

If the number of demanders for electric cars increases at the same time as the number of suppliers of electric cars increases, which of the following is true?

• A)The equilibrium quantity will decrease.
• B)Both the demand and supply curves will shift to the left.
• C)The equilibrium quantity will increase.
• D)The effect on the equilibrium quantity is ambiguous without more information.

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Definitions:

Gross Profit Method

An accounting technique used to estimate inventory levels and cost of goods sold, calculated as sales minus the cost of goods sold.

Estimated Gross Profit Rate

A projected figure that calculates the percentage of gross profit to sales, used for analyzing a company's financial health.

Inventory Turnover

A metric that indicates how many times a company’s inventory is sold and replaced over a specific period.