If Demand Is Unchanged,a Rightward Shift in the Supply Curve

question 107

Multiple Choice

If demand is unchanged,a rightward shift in the supply curve for plasma TVs will cause:

• A) A decrease in equilibrium quantity and a higher equilibrium price.
• B) An increase in equilibrium quantity and a higher equilibrium price.
• C) An increase in equilibrium quantity and a lower equilibrium price.
• D) A decrease in equilibrium quantity and a lower equilibrium price.

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Definitions:

Net Present Value

A financial metric used to estimate the value of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows.

Cash Flows

Movements of money into or out of a business, project, or financial product, often analyzed for assessing financial health or the viability of investments.

Demand Management

The process of forecasting, planning for, and managing the demand for products and services to optimize supply chain performance.

Service Sector

The segment of the economy that includes trade, financial, lodging, education, legal, medical, and other professional occupations.