Assume That Both the Demand Curve and the Supply Curve

question 194

Multiple Choice

Assume that both the demand curve and the supply curve for DVD players shift to the left but the demand curve shifts more than the supply curve.As a result

• A)both the equilibrium price and quantity of DVD players will decrease.
• B)the equilibrium price of DVD players will decrease; the equilibrium quantity may increase or decrease.
• C)the equilibrium price of DVD players may increase or decrease; the equilibrium quantity will decrease.
• D)the equilibrium price of DVD players will increase; the equilibrium quantity may increase or decrease.

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Definitions:

Catalog Price

The price listed in a catalog, not accounting for any discounts or promotions.

Credit Terms

Credit Terms are the payment terms and conditions established by a seller, including the period that has to pass before an invoice is considered overdue.

Cost Of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials and labor.

Beginning Inventory

The value of goods available for sale at the start of an accounting period, carried over from the end of the previous period.