Assume the Most Typical Shapes for the Demand and Supply

question 176

Multiple Choice

Assume the most typical shapes for the demand and supply in a competitive market.Suppose that demand falls and supply increases.Which of the following statements is correct?

• A) The equilibrium price will fall;the equilibrium quantity may rise or fall.
• B) The equilibrium price will rise;the equilibrium quantity may rise or fall.
• C) The equilibrium quantity will fall;the equilibrium price may rise or fall.
• D) The equilibrium quantity will rise;the equilibrium price may rise or fall.
• E) The equilibrium price will fall;the equilibrium quantity will not change.

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Definitions:

Calendar Year

The period of time from January 1 to December 31 in the Gregorian calendar.

Sales Estimate

An approximation of the number or monetary value of sales that a company expects to achieve within a certain period.

Cash-Out Situation

A scenario where an investor or business needs to liquidate assets or securities to cover liabilities or other cash needs.

Collection Period

The amount of time it takes for a business to receive payments owed by its customers.