The Graph Illustrates the Market for Computers

question 67

Multiple Choice

The graph illustrates the market for computers. If the number of buyers of computers increases and technology advances, you predict that the

• A) equilibrium quantity of computers will decrease.
• B) equilibrium price of a computer will fall.
• C) equilibrium quantity of computers will increase.
• D) equilibrium quantity of computers might increase, decrease or not change.
• E) equilibrium price of a computer will rise.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was acquired, used to reduce the asset's book value over time.

Intangible Assets

Non-physical assets that provide economic benefits to a company, such as patents, trademarks, goodwill, and copyrights.

Issuance of Bond

The process through which a bond is created and sold to investors, thus raising capital for the issuer.

Financing Activities

Transactions that result in changes to the size and composition of the equity capital or borrowings of an entity.