Assume a Market Is in Equilibrium

question 98

Multiple Choice

Assume a market is in equilibrium. There is an increase in supply, but no change in demand As a result the equilibrium price ________, and the equilibrium quantity ________.

• A) rises; increases
• B) falls; decreases
• C) falls; increases
• D) rises; decreases
• E) rises; does not change

---

Definitions:

Cheque Delay

A situation where there is a postponement in the processing or clearance of a cheque by a bank.

Average Daily Float

This refers to the average amount of uncollected checks or electronic transfers in the process of clearing.

Cheques

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer.

Collection Delay

The time lag between the date an entity issues an invoice and the date it actually receives payment.