An Increase in Demand Will Cause

question 407

Multiple Choice

An increase in demand will cause

• A) an increase in supply.
• B) a decrease in supply.
• C) an increase in quantity supplied.
• D) a decrease in quantity supplied.
• E) a decrease in equilibrium price.

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Definitions:

Commercial Substance

Commercial substance is a concept that a transaction significantly changes the economic position or cash flows of a company, beyond the mere transfer of assets or obligations.

GAAP

Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting that includes the details, complexities, and legalities of business and corporate accounting.

Intangible Assets

Intangible assets are non-physical assets having a useful life greater than one year, such as patents, trademarks, and goodwill, that a company owns and can create economic benefit.

IFRS

International Financial Reporting Standards, a set of global accounting standards for financial reporting.