Assume the Demand for Coffee Increases While the Supply Decreases

question 82

Multiple Choice

Assume the demand for coffee increases while the supply decreases. Which of the following outcomes is certain to occur?

• A)The equilibrium price of coffee will rise.
• B)The equilibrium quantity of coffee will rise.
• C)The equilibrium price of coffee will fall.
• D)The equilibrium quantity of coffee will fall.

---

Definitions:

Stated Value

A specified value assigned to no-par-value stock by the company's board of directors.

General Journal

A comprehensive accounting record where all financial transactions are initially recorded, using a double-entry accounting system.

Nonparticipating

typically refers to an insurance or investment product feature where the holder does not have the right to receive dividends or bonuses generated from the underlying pool of assets.

Par Value

The nominal or face value of a stock or bond, as stated by the issuing company, which may bear no relation to its market value.