The Equilibrium Price Will Fall and the Equilibrium Quantity Might

question 484

Multiple Choice

The equilibrium price will fall and the equilibrium quantity might increase, decrease, or stay the same when the

• A) demand and the supply of a good both increase.
• B) demand for a good increases and the supply of it decreases.
• C) demand for a good decreases and the supply of it increases.
• D) demand and the supply of a good both decrease.

---

Definitions:

Unusual In Nature

Events or transactions that are not typical of the normal activities of the entity and thus not expected to recur frequently or regularly.

Pro Forma Earnings

Financial results excluding one-time events to give investors an idea of a company's normal earnings potential.

Basic EPS

Basic Earnings Per Share, a calculation that shows how much earnings are available to common stockholders, on a per-share basis.

Sustainable Earnings

Earnings resulting from the core operations of a company, expected to continue into the future without significant variation.