The Equilibrium Quantity of a Good Will Increase and Its

question 383

Multiple Choice

The equilibrium quantity of a good will increase and its equilibrium price might rise, fall, or stay the same when

• A) its demand and supply both increase.
• B) its demand increases and supply decreases.
• C) its demand decreases and supply increases.
• D) its demand and supply both decrease.

---

Definitions:

Equity

Equity represents the value that would be returned to a company's shareholders if all of the assets were liquidated and all the company's debts were paid off.

Sale Of Products

The revenue generated from the selling of goods produced by a company.

Accounting Equation

A fundamental principle in accounting that states assets equal liabilities plus equity, forming the foundation of double-entry bookkeeping.

Stockholder Investments

Funds or assets that shareholders provide to a corporation in exchange for ownership interest.