If the Supply Curve and the Demand Curve for Lettuce

question 3

Multiple Choice

If the supply curve and the demand curve for lettuce both shift to the left by an equal amount,what can we say about the resulting changes in equilibrium price and quantity?

• A) The price will increase,but the quantity may increase or decrease.
• B) The price will increase,and the quantity will increase.
• C) The price will decrease,and the quantity will increase.
• D) The price will stay the same,but the quantity will increase.
• E) The price will stay the same,but the quantity will decrease.

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Definitions:

Capital Balances

The amount of equity ownership that different parties have in a company, typically represented by the shares held or the amount invested in the business.

Withdrawal

The act of taking money out of a bank account, or the removal of assets from a business by the owner for personal use.

Partnership Assets

Assets that are owned by a partnership and are used in the business's operations, typically including things like cash, property, and equipment.

Income Ratios

Metrics that evaluate a company's ability to generate earnings relative to its revenue, equity, assets, or other financial metrics.