When Supply and Demand Both Increase,equilibrium

question 41

Multiple Choice

When supply and demand both increase,equilibrium

• A)price will increase.
• B)price will decrease.
• C)quantity may increase,decrease,or remain unchanged.
• D)price may increase,decrease,or remain unchanged.

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Definitions:

Deferred Revenue

Income received in advance for products or services which is recorded as a liability until it is earned.

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a reversal of revenue previously recognized.

Purchase Discount

A reduction in the purchase price, offered by the seller to the buyer, as an incentive for early payment.

Terms 2/10 n/30

Payment terms indicating a 2% discount if paid within 10 days, otherwise the full amount is due within 30 days.