In the Following Question You Are Asked to Determine,other Things

question 65

Multiple Choice

In the following question you are asked to determine,other things equal,the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for,or supply (S) of,X; (2) the equilibrium price (P) of X;and (3) the equilibrium quantity (Q) of X. Refer to the given information.An increase in the prices of resources used to produce X will:

• A) increase S,increase P,and increase Q.
• B) increase D,increase P,and increase Q.
• C) decrease S,decrease P,and decrease Q.
• D) decrease S,increase P,and decrease Q.

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Definitions:

Fair Value

Fair value is the estimated price at which an asset or liability could be bought or sold in a current transaction between willing parties, other than in a liquidation.

Equity Method

An accounting technique used to record investments in associated companies.

Fixed Assets

Long-term tangible assets used in a company's operations, such as buildings, machinery, and equipment, which are not typically sold in the course of business.

Income Statement

A financial document that shows a company's revenues, expenses, and net income over a specific period.