If the Increase in the Supply of a Product Is

question 17

Multiple Choice

If the increase in the supply of a product is greater than the increase in the demand,what will be the immediate result?

• A)A surplus.
• B)A shortage.
• C)The price will increase.
• D)Cannot be determined.

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Definitions:

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Equity Methods

An accounting technique used for recording investments in associate companies where the investor has significant influence but does not have full control or majority ownership, typically implying ownership of 20% to 50% of the voting stock.

Voting Stock

Shares of a corporation that grant the shareholder the right to vote on corporate matters, such as the election of the board of directors.

Equity Method

An accounting technique used to assess the profits earned by investments in other companies by recognizing income and dividends from the investment.