If the Equilibrium Price of a Good Decreases and the Equilibrium

question 140

Multiple Choice

If the equilibrium price of a good decreases and the equilibrium quantity of the good decreases,we can conclude that

• A) demand increased.
• B) demand decreased.
• C) supply increased.
• D) supply decreased.

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Definitions:

Fair Value Adjustment

A process of adjusting the book value of an asset or liability to reflect its current market value.

Available-for-Sale

A category of securities that are not classified as held-to-maturity or trading securities, and are recorded at fair value.

Unrealized Loss

A loss that occurs on paper due to a decrease in the value of an investment, but has not been realized through a transaction.

Equity Method Investments

Accounting for investments in which the investor has significant influence over the investee, recognizing proportional earnings of the investee.