Use the Following to Answer Question(s): Demand and Supply Schedules

question 170

Multiple Choice

Use the following to answer question(s) : Demand and Supply Schedules for a Good

-(Exhibit: Supply and Demand Schedules for a Good) If there were a decrease in supply by 100 units at each price, the equilibrium price and quantity would be ________ and ________ units, respectively.

• A) $2.00; 100
• B) $3.00; 140
• C) $3.50; 175
• D) $4.00; 160

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Definitions:

Goodwill

An intangible asset that arises when a buyer acquires an existing business, representing the premium paid over the fair market value of the net identifiable assets of the business.

Borrowing Costs

Borrowing Costs are the interest and other costs that an entity incurs in connection with the borrowing of funds.

U.S. GAAP

Generally Accepted Accounting Principles in the United States, a standard framework of guidelines for financial accounting.

IFRS

A collection of worldwide accounting standards created by the International Accounting Standards Board, known as International Financial Reporting Standards.