All Else Held Constant,an Increase in Supply Will Lead to a

question 4

Multiple Choice

All else held constant,an increase in supply will lead to a

• A)decrease in price and increase in quantity demanded.
• B)increase in price and increase in quantity demanded.
• C)increase in price and decrease in quantity demanded.
• D)decrease in price and decrease in quantity demanded.

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Definitions:

Revaluation Surplus

The increase in value of an asset, recognized in the equity section of a company's balance sheet, when its fair market value is higher than its net book value.

Contributed Capital

Funds raised by a company through the issuance of shares to investors, also known as share capital or paid-in capital.

Share Premium

The amount received by a company over and above the par value of its shares when issuing new shares; also known as additional paid-in capital.

Share Premium

The amount received by a company over and above the face value of its shares when issued.