When Demand Falls and Supply Stays the Same

question 179

Multiple Choice

When demand falls and supply stays the same,

• A)equilibrium price rises.
• B)equilibrium price falls.
• C)equilibrium price stays the same.

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Definitions:

Stakeholder Theory

A concept in organizational management and business ethics that emphasizes the importance of considering the interests of all parties affected by business activities, not just shareholders.

Financial Interests

Refers to the ownership stake or economic benefits that an individual or entity has in an asset or a transaction.

Agency Costs

The costs associated with resolving conflicts of interest between company management and shareholders.

Sole Proprietorship

A business owned by a single individual.