If Both the Supply of and the Demand for a Good

question 52

Multiple Choice

If both the supply of and the demand for a good increase simultaneously, the equilibrium price will

• A) increase.
• B) decrease.
• C) be indeterminate.
• D) remain unchanged.

---

Definitions:

Contra Account

An account used in the general ledger to reduce the value of a related account when the two are netted together.

Normal Balance

The side (debit or credit) of an account that is expected to have a positive balance.

Subtraction

A basic mathematical operation representing the difference between numbers or quantities.

Straight-Line Depreciation

Straight-line depreciation is a method of allocating the cost of a tangible asset over its useful life in equal installments.