A Competitive Market Is in Equilibrium

question 20

Multiple Choice

A competitive market is in equilibrium.Then there is an increase in demand and an increase in supply.The equilibrium price ________,and the equilibrium quantity ________.

• A)falls;increases
• B)perhaps changes but we can't say if it rises,falls or stays the same;increases
• C)perhaps changes but we can't say if it rises,falls or stays the same;does not change
• D)rises;increases
• E)falls;perhaps changes but we can't say if it increases,decreases or stays the same

Understand the effects of discrimination on employee health and job outcomes.

Recognize practices that contribute to workplace diversity and the barriers to valuing it.

Understand the concept of opportunity costs and its implications on individual behaviors.

Recognize the mechanisms used by markets to mitigate adverse selection and information asymmetry.

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Definitions:

Interest-Bearing Note

A debt instrument that pays interest to the holder until the maturity date when the principal amount is repaid.

Interest Expense

The cost incurred by an entity for borrowed funds, representing the interest payable on any type of debt.

Accrued Interest

Accrued interest refers to the interest on a bond or loan that has accumulated since the principal investment, or last interest payment, but has not yet been paid.

Adjusting Entry

An accounting transaction recorded to correct or update the financial statements prior to the issuance of the financial statements.