Assume a Competitive Market Is in Equilibrium

question 81

Multiple Choice

Assume a competitive market is in equilibrium.There is an increase in demand,but no change in supply.As a result,the equilibrium price ________,and the equilibrium quantity ________.

• A)rises;does not change
• B)rises;increases
• C)falls;does not change
• D)falls;increases
• E)falls;decreases

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Definitions:

Accounts Receivable

The money owed to a company by its customers for goods or services delivered on credit but not yet paid for.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenue and expenses to show net income or loss.

Operating Activities

The portion of a company's cash flow statement that deals with the cash inflows and outflows from its core business operations.

Accounts Receivable

Money owed to a business by its customers for products or services delivered on credit.