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:

Fair Value Hedge

A financial hedge that is used to mitigate the risks associated with the changes in the fair value of assets or liabilities or an identified portion of such assets or liabilities.

Discount Recognized

Discount Recognized refers to the process of acknowledging a reduction from the nominal value of a financial instrument when it is realized or accounted for.

Foreign Exchange Gain

A profit arising from an increase in the value of one currency relative to another in the foreign exchange markets.