Ceteris Paribus, If the Market Demand for a Product Increases

question 92

Multiple Choice

Ceteris paribus, if the market demand for a product increases, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____.

• A)​increase; indeterminate
• B)​decrease; decrease
• C)​indeterminate; decrease
• D)​increase; increase

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Definitions:

Free Cash Flow

Free cash flow is the amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Common Stock

A type of equity ownership in a corporation, with voting rights and potential for dividends.

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives.

Fixed Assets

Fixed Assets are long-term tangible assets that a company uses in its operations and which are not expected to be consumed or converted into cash within a year.