An Increase in the Equilibrium Price and a Decrease in the Equilibrium

question 208

Multiple Choice

An increase in the equilibrium price and a decrease in the equilibrium quantity can be the result of

• A) a decrease in demand.
• B) an increase in supply.
• C) a decrease in supply.
• D) an increase in demand.
• E) None of the above is correct.

---

Definitions:

Accounts Receivable

Accounts receivable from clients for merchandise or services supplied but payment not received.

Unearned Revenue

Money received by a company for goods or services yet to be provided, recorded as a liability on the balance sheet until earned.

Accounts Receivable

Unpaid amounts due to a company from its clients for delivered or utilized goods or services awaiting payment.

Land

It refers to the earth's surface extending downward to the center and upward to infinity, including permanently attached natural objects, and is considered a non-depreciable asset in accounting.