A Decrease in the Demand for Eggs Due to Changes

question 135

Multiple Choice

A decrease in the demand for eggs due to changes in consumer tastes,accompanied by a decrease in the supply of eggs as a result of an outbreak of Avian flu,will result in

• A)a decrease in the equilibrium quantity of eggs and no change in the equilibrium price.
• B)a decrease in the equilibrium price of eggs and no change in the equilibrium quantity.
• C)a decrease in the equilibrium price of eggs; the equilibrium quantity may increase or decrease.
• D)a decrease in the equilibrium quantity of eggs; the equilibrium price may increase or decrease.

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Definitions:

Financial Statement

A written report that quantitatively describes the financial health of a company, including balance sheet, income statement, and cash flow statement.

Permanent/Temporary

Designations for accounts or job positions that indicate if they are expected to last indefinitely or have a fixed duration, respectively.

Gross Method

An accounting method for recording purchases at the invoice amount without deducting any discounts offered.