The Forces of Supply and Demand Assure That

question 372

Multiple Choice

The forces of supply and demand assure that

• A) demand curves and supply curves tend to shift to the right as time goes by.
• B) the price of a good will eventually rise in response to an excess demand for that good.
• C) when the supply curve for a good shifts, the demand curve for that good shifts in response.
• D) the equilibrium price of a good will be rising more often than it will be falling.

---

Definitions:

Control Premium

An additional amount that a buyer is willing to pay over the current market value of a company to obtain controlling interest.

Consolidate

To combine assets, liabilities, and other financial items of two or more entities into one.

Financial Data

Quantitative information pertaining to financial transactions, including earnings, expenditures, assets, liabilities, and equity.

Controlling Interest

Ownership interest in a business entity that gives the holder the power to direct or influence the direction of management and policies.