If the Price of Sparkling Water Decreases, Which Situation Would

question 13

Multiple Choice

If the price of sparkling water decreases, which situation would occur in the market for sparkling water, all else equal?

• A) an increase in the quantity supplied
• B) a decrease in the quantity supplied
• C) an increase in supply
• D) a decrease in supply

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Definitions:

Capital Contribution

The sum of money or assets that the owners or shareholders provide to a company for its use in business operations.

Contribution

The act of providing a partial payment or service by a party among others towards a common goal or to make up for a joint liability.

Limited Partnership

A limited partnership is a form of partnership similar to a general partnership, except that in addition to one or more general partners, there are one or more limited partners who have limited liability to the extent of their investments and do not participate in the management of the business.

Promissory Note

A written promise to pay a specified sum of money to a designated person at a fixed or determinable future time.