It Is True That the Equilibrium Quantity Will Always Go

question 118

Multiple Choice

It is true that the equilibrium quantity will always go up if supply:

• A) and demand both increase.
• B) increases and demand decreases.
• C) and demand both decrease.
• D) decreases and demand remains unchanged.

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Definitions:

Cost Formula

An equation used to predict costs at different levels of activity, typically encompassing both fixed and variable components.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for a more accurate comparison of actual performance to budgeted performance.

Total Expenses

The sum of all costs and expenses incurred by a business in a given period.

Fixed Cost

Expenses that remain constant regardless of production or sales volumes, including rent, salaries, and insurance premiums.