If Both the Demand for a Product and the Supply

question 35

Multiple Choice

If both the demand for a product and the supply of it increase, then the equilibrium quantity will ________ and the equilibrium price will ________.

• A) decrease; increase
• B) decrease; decrease
• C) decrease; remain constant
• D) increase; either increase, decrease, or remain constant

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Definitions:

Percentage Of Increase

A measure expressed as a percentage that reflects the rise in value or quantity of something compared to its previous value.

Horizontal Analysis

A financial analysis technique that evaluates changes in financial statement line items over a series of reporting periods.

Vertical Analysis

A method in financial accounting where each entry in a financial statement is listed as a percentage of a base figure, facilitating the comparison of financial statements over different periods.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue by comparing net credit sales to the average accounts receivable.