If the Supply Curve Shifts Leftward and the Demand Curve

question 155

Multiple Choice

If the supply curve shifts leftward and the demand curve also shifts leftward, and if demand shrinks relatively less than supply, then price will:

• A) rise and quantity will fall.
• B) fall and quantity will rise.
• C) be indeterminate and quantity will fall.
• D) stay the same and quantity will fall.

Determine probabilities involving complementary events and their properties.

Evaluate the impact of specific characteristics or parameters on probability outcomes.

Apply probability theory to real-life contexts, such as polling, gaming, and consumer behavior.

Understand the concept of disjoint events in the context of probability.

---

Definitions:

IFRS

An international financial reporting framework that sets out the principles for reporting financial information used around the world.

Capitalized Interest

Interest expenses that are included as part of the cost of constructing a long-term asset and thus included in the asset's valuation on the balance sheet.

Incremental Borrowing

Refers to the additional interest or costs a company incurs to obtain extra funds or increase its level of debt.

Commercial Substance

The concept refers to a situation where the risk, timing, or amount of future cash flows of a business changes as a result of a transaction.