There Is a Technological Advance in the Production of Ice

question 418

Multiple Choice

There is a technological advance in the production of ice cream. As a result, the supply curve of ice cream shifts ________ and ________.

• A) leftward; both the equilibrium price and equilibrium quantity fall
• B) rightward; both the equilibrium price and equilibrium quantity fall
• C) rightward; the equilibrium price falls while the equilibrium quantity increases
• D) rightward; both the equilibrium price and equilibrium quantity rise

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Definitions:

Bond Issuance

The process of selling bonds to investors in order to raise capital.

Investing Activities

Financial actions that involve the purchase or sale of long-term assets and other investments not considered cash equivalents.

Repaying Money

The process of returning borrowed funds to the lender along with any agreed upon interest or fees.

Collecting Cash

The process of receiving cash, usually from customers, as payment for goods or services or as repayment of obligations.