Suppose That Buying and Selling a Certain Good Is Made

question 9

Multiple Choice

Suppose that buying and selling a certain good is made illegal. In the market for this good, the demand curve shifts ________ and the supply curve shifts ________.

• A)rightward; rightward
• B)leftward; leftward
• C)rightward; leftward
• D)leftward; rightward
• E)None of the above; neither the demand curve nor the supply curve shifts.

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Definitions:

Financial Reporting

The method of generating reports that reveal a company's financial condition to its managers, investors, and governmental agencies.

GAAP

Generally Accepted Accounting Principles; a collection of commonly-followed accounting rules and standards for financial reporting.

Operating Segment

A distinct part of a business that engages in business activities which earn revenues, incur expenses, and is regularly reviewed by management.