When Supply Decreases and Demand Does Not Change, the Equilibrium

question 116

Multiple Choice

When supply decreases and demand does not change, the equilibrium quantity ________ and the equilibrium price ________.

• A) increases; rises
• B) decreases; falls
• C) increases; falls
• D) decreases; rises

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Definitions:

Comprehensive Income

The change in equity of a company during a period from transactions and other events, excluding any owner contributions and distributions.

Unrealized Loss

A financial loss that has occurred on paper due to the current market value being lower than the asset's purchase price, but has not yet been realized through sale.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income levels, jurisdictions, or specific goods and services.

Discontinued Operations

Parts of a company's core business or subsidiaries that have been disposed of or ceased permanently.