An Increase in Both the Equilibrium Price and the Equilibrium

question 169

Multiple Choice

An increase in both the equilibrium price and the equilibrium quantity of DVD players is best explained by a(n) :

• A) increase in the demand for DVD players.
• B) increase in the supply of DVD players.
• C) decrease in the supply of DVD player.
• D) decrease in the demand for DVD players.

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Definitions:

Depreciation Costs

The allocation of the cost of a tangible asset over its useful life, representing the decline in value due to wear and tear, age, or obsolescence.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing to pursue a particular action.

Accounting Costs

Costs that appear on the financial statements of a company.

Economic Decisions

Choices made by individuals, firms, or governments regarding the allocation of resources to optimize benefits.