If the Demand and Supply Curves for a Commodity Both

question 114

Multiple Choice

If the demand and supply curves for a commodity both shift to the left by the same amount,then in comparison to the initial equilibrium,the new equilibrium will be characterized by ________.

• A) a higher price and quantity
• B) the same price and a higher quantity
• C) the same price and a lower quantity
• D) a lower price and a higher quantity

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Definitions:

Adjusting Entry

A journal entry made in the accounting records at the end of an accounting period to update the balances of certain accounts.

Inventory

The cumulative quantity of products and materials a business possesses for the aim of selling or manufacturing.

Alternative Adjusting Entries

Adjustments made in the accounting records to record revenues that have been earned but not yet recorded or expenses that have been incurred but not yet recorded.

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded in the accounting period they relate to.