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:

Journal Entry

A record of a transaction in the accounting journal that may affect one or more accounts.

Residual Value

The projected worth of an asset at the time of sale, after it has served its purpose.

Accumulated Depreciation

The cumulative depreciation of an asset up to a single point in its life, representing the wear and tear, deterioration, or obsolescence of the asset.

Commercial Substance

The aspect of a business transaction that causes a change in the cash flows or financial stability of the entities involved, indicating a genuine economic effect.