Which of the Following Would Cause Both the Equilibrium Price

question 232

Multiple Choice

Which of the following would cause both the equilibrium price and equilibrium quantity of oysters (assume that oysters are a normal good) to decrease?

• A)an increase in consumer income
• B)an oil spill that sharply reduces oyster output
• C)a decrease in consumer income
• D)a technological advancement in the production of oysters

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Definitions:

Adjusting Entry

An accounting entry made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred, ensuring that financial statements reflect accurate and up-to-date information.

Expense Accounts

Accounts used in accounting to track money spent or costs incurred in a business's operation, often categorized for budgeting and taxation purposes.

Asset Account

An account on a company's balance sheet that represents a resource with economic value owned or controlled by the business.

Revenue Accounts

Accounts that track the income generated from a company's primary and secondary activities, such as sales revenue, service revenue, and interest income.