Which of the Following Events Must Cause Equilibrium Price to Fall

question 81

Multiple Choice

Which of the following events must cause equilibrium price to fall?

• A)demand increases and supply decreases
• B)demand and supply both decrease
• C)demand decreases and supply increases
• D)demand and supply both increase

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Definitions:

Available-For-Sale Debt Securities

Debt securities that are neither classified as held-to-maturity nor trading securities, and companies can sell these before their maturity date if needed.

Amortized Cost Basis

A financial calculation method that gradually writes off the initial cost of an asset over time.

Comprehensive Income

An all-encompassing measure of income that includes all changes in equity during a period except those resulting from investments by and distributions to shareholders.

Credit Loss

A reduction in the projected future cash flows from a loan or other financial instrument due to the borrower's inability to make payments as agreed.