"As Fewer People Buy Computers,the Demand for Internet Service Will

question 175

Multiple Choice

"As fewer people buy computers,the demand for Internet service will decrease and the price of Internet service will increase.The rise in the price of Internet service will increase the supply of Internet service." This statement is ________ because ________.

• A)false;the decrease in the demand for Internet service creates a surplus and to eliminate the surplus,supply increases
• B)true;when the demand for Internet service increases,the supply of Internet service increases so that the price of Internet service does not increase
• C)true,when the demand for Internet service increases,the supply of Internet service increases too so that no surplus occurs
• D)true;the increase in the price of Internet service increases the supply of Internet service to eliminate the shortage
• E)false;a decrease in demand for Internet service does not increase the price of Internet service and an increase in the price of Internet service does not increase the supply of Internet service

---

Definitions:

Ownership Transfer

The process by which the title of property or assets is moved from one party to another, affecting legal rights and responsibilities.

Bank Service Charges

Fees charged by a bank for the various services it provides to its customers.

Cash Equivalents

Short-term, highly liquid investments that are easily convertible into known amounts of cash and so near their maturity that they present insignificant risk of changes in value.

Balance Sheet

A financial statement that presents a company's financial position at a specific point in time, showing assets, liabilities, and shareholders' equity.