The Figure Given Below Shows the Demand and Supply Curves

question 16

Multiple Choice

The figure given below shows the demand and supply curves in the market for coffee. S₁ and D₁ are the original demand and supply curves.Figure 3.5
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-Assume that at the current market price of $4 per unit of a good, you are willing and able to buy 20 units. Last year at a price of $4 per unit, you would have purchased 30 units. What is most likely to have happened over the last year?

• A)Demand has increased
• B)Demand has decreased
• C)Supply has increased
• D)Supply has decreased
• E)Quantity supplied has decreased

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting guidelines providing a global framework for financial statements.

Deferral Method

An accounting procedure that postpones the recognition of certain income or expenses until a later accounting period.

Financial Statements

Reports that provide an overview of a company's financial condition, including income statement, balance sheet, statement of cash flows, and statement of changes in equity.

Capital Assets

Long-term assets that a business uses in its operations and that are not intended for resale, such as property, plant, and equipment.