Which of the Following Statements Is True

question 16

Multiple Choice

Which of the following statements is true?

• A)An increase in demand causes an increase in the equilibrium price; the increase in price causes supply to increase.
• B)A decrease in supply causes the equilibrium price to rise; the increase in price then results in a decrease in quantity demanded.
• C)If both demand and supply decrease,there must be a decrease in the equilibrium price; equilibrium quantity may either increase or decrease.
• D)If demand increases and supply decreases one cannot determine if the equilibrium price will increase or decrease without knowing which change is greater.

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Definitions:

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded in the company's accounts.

Trade Magazine

A publication focused on a specific industry or profession, often containing news, trends, and articles of interest to those in the field.

Subscription Revenue

Income generated from customers who pay recurrently for access to a product or service over a subscription period.

Insurance Expense

The cost incurred by a business to purchase insurance, which provides financial protection against losses.