With Demand Remaining Unchanged, Which of the Following Is Likely

question 84

Multiple Choice

With demand remaining unchanged, which of the following is likely to happen if the supply curve shifts to the left?

• A) The equilibrium price and quantity will rise.
• B) The equilibrium price will rise and the equilibrium quantity will fall.
• C) There will be no change in the equilibrium price or quantity.
• D) The equilibrium price and quantity will fall.

---

Definitions:

Step-Down Method

An allocation method used in accounting to distribute costs among departments or products, starting with the department that provides the most services to others.

Service Department Costs

Expenses related to departments that support the production process but do not directly engage in manufacturing.

Operating Departments

Divisions or sections within a company that are directly involved in its core business operations, contributing to the production of goods or services.

Personnel Costs

Expenses related to employees, including wages, salaries, benefits, payroll taxes, and training costs, which are a major part of operating expenses for many businesses.