Assuming Conventional Supply and Demand Curves, Changes in the Determinants

question 163

Multiple Choice

Assuming conventional supply and demand curves, changes in the determinants of both supply and demand will generally

• A) alter both equilibrium price and quantity.
• B) alter equilibrium quantity but not equilibrium price.
• C) alter equilibrium price but not equilibrium quantity.
• D) have no effect on equilibrium price or quantity.

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Definitions:

Long-Term Debt Ratio

The long-term debt ratio measures the proportion of a company's total debt that is due in more than one year, indicating the extent to which a company relies on long-term borrowing for its financing needs.

Total Debt

The sum of all owed money by an entity, including short-term and long-term liabilities.

Receivable Turnover

A financial ratio that measures how efficiently a company collects its accounts receivable.

Inventory Turnover

A measure indicating the frequency at which a company's inventory is sold and replenished within a certain timeframe, reflecting the effectiveness of its inventory control.