What Combination of Changes Would Most Likely Decrease the Equilibrium

question 259

Multiple Choice

What combination of changes would most likely decrease the equilibrium price?

• A) when supply decreases and demand increases
• B) when demand increases and supply increases
• C) when demand decreases and supply decreases
• D) when supply increases and demand decreases

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Definitions:

Loss On Sale

The financial loss that occurs when the selling price of an asset is less than its carrying amount at the time of sale.

Operating Activity

Activities that constitute the primary or main activities of an organization, such as sales or services.

Investment In Subsidiary

The purchase of shares or interests in a subsidiary company by a parent company to obtain control or significant influence over the subsidiary's management and operations.

Book Value

The net value of an asset as recorded on the balance sheet, calculated as the asset's cost minus accumulated depreciation.