Which of the Following Would Raise Both the Equilibrium Price

question 61

Multiple Choice

Which of the following would raise both the equilibrium price and the equilibrium quantity of strawberries?

• A) A decrease in the demand for strawberries.
• B) An increase in the demand for strawberries.
• C) A decrease in the supply of strawberries.
• D) An increase in the supply of strawberries.

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Definitions:

WACC Calculation

The process of determining a company's Weighted Average Cost of Capital, incorporating the costs of equity, debt, and any other forms of financing.

Semiannually

Occurring twice a year, generally used in the context of payments, interest accruals, or reports.

CAPM

Capital Asset Pricing Model, a theory that describes the relationship between systematic risk and expected return for assets.

Target Capital Structure

The mix of debt, equity, and other financing sources a company aims to use to fund its operations and growth.