What Happens to Equilibrium Price When Simultaneously Demand Increases and Supply

question 200

Multiple Choice

What happens to equilibrium price when simultaneously demand increases and supply decreases?

• A)Equilibrium price will increase.
• B)Equilibrium price will decrease.
• C)Equilibrium price will remain the same.
• D)Equilibrium price may increase,decrease,or remain the same depending on the magnitude of the shifts in demand and supply.

Distinguish between the cash basis and accrual basis of accounting.

Learn to prepare income statements and statements of changes in equity from adjusted trial balances.

Understand the valuation and presentation of assets and liabilities in the context of bankruptcy and reorganization.

Identify how gains, losses, and specific costs are reported during reorganization.

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Definitions:

Vote Determination

The process of deciding the outcome of an election or decision by counting and comparing the votes cast.

Profit Maximization

Profit maximization is the process or objective of adjusting production and sales to achieve the highest possible profit levels under given conditions.

Production Function

An equation or formula that describes the relationship between the inputs used in production and the output of goods or services.

Output

The total amount of goods or services produced by a company, industry, or economy within a given period.