Assume That Both the Demand Curve and the Supply Curve

question 133

Multiple Choice

Assume that both the demand curve and the supply curve for tablet computers shift to the right, but the demand curve shifts more than the supply curve. As a result:

• A)both the equilibrium price and quantity of tablet computers will increase.
• B)the equilibrium price of tablet computers will increase; the equilibrium quantity may increase or decrease.
• C)the equilibrium price of tablet computers may increase or decrease; the equilibrium quantity will increase.
• D)the equilibrium price of tablet computers will decrease; the equilibrium quantity may increase or decrease.

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Definitions:

Perpetual Inventory System

An inventory management system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Consignee

The person or company that receives goods for sale, storage, or shipment on behalf of another, holding goods without taking ownership.

FOB Destination

A shipping term where the seller is responsible for the delivery of goods to a specific destination, absorbing all costs and risks until the goods are received by the buyer.

Perpetual Inventory System

A method of inventory management where updates to inventory records are made continuously as transactions occur.