If the Demand for a Good Decreased, What Would Be

question 326

Multiple Choice

If the demand for a good decreased, what would be the effect on the equilibrium price and quantity?

• A) Price would increase, and quantity would decrease.
• B) Price would decrease, and quantity would decrease.
• C) Price would increase, and quantity would increase.
• D) Price would decrease, and quantity would increase.

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Definitions:

Income

Earnings generated from business activities over a period, often categorized as net, gross, operating, or non-operating income.

Dividends Paid

Payments made by a corporation to its shareholder members from its earnings or profits.

Fair-Value Method

An accounting approach where assets and liabilities are listed at their fair value, reflecting their current market price.

Majority-Owned Investment

An investment in which the parent company owns more than 50% of the subsidiary's voting stock.