A Decrease in Supply,holding Demand Constant,will Always Result in A(n)

question 80

Multiple Choice

A decrease in supply,holding demand constant,will always result in a(n)

• A) higher equilibrium price.
• B) lower equilibrium price.
• C) higher equilibrium quantity.
• D) greater quantity demanded.
• E) indeterminate change in the equilibrium quantity.

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Definitions:

Plant Assets

Durable physical assets employed in the running of a business, designed for long-term use and not for being sold off.

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded in the company's financial statements.

Accrued Revenues

Revenues that have been earned but not yet received in cash or recorded at the statement date, common in service-related transactions.

Adjusting Entry

An accounting entry made in the books at the end of an accounting period to allocate revenues and expenditures to the period in which they actually occurred.