There Is a Technological Advance in the Production of Ice

question 418

Multiple Choice

There is a technological advance in the production of ice cream. As a result, the supply curve of ice cream shifts ________ and ________.

• A) leftward; both the equilibrium price and equilibrium quantity fall
• B) rightward; both the equilibrium price and equilibrium quantity fall
• C) rightward; the equilibrium price falls while the equilibrium quantity increases
• D) rightward; both the equilibrium price and equilibrium quantity rise

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Definitions:

Partnership Term

The duration for which a partnership agreement is set to exist, which can be indefinite or fixed, as specified in the partnership agreement.

Partnership Obligations

The duties and responsibilities that partners within a business partnership must fulfill, which may include contributing capital, sharing in profits and losses, and acting in the partnership’s best interest.

Assumed Liability

Liability that a party takes on voluntarily from another party, often seen in business acquisitions where the buyer takes on liabilities of the seller.

Creditors

Individuals or entities to whom money is owed by a debtor.