Suppose That a Market Is Currently at Equilibrium

question 15

Multiple Choice

Suppose that a market is currently at equilibrium.A rightward shift of the supply curve would imply

• A) a rightward shift of the demand curve.
• B) a leftward shift of the demand curve.
• C) that the supply curve would continue to shift to the right over time.
• D) that the supply curve would eventually have to shift back to its original position.
• E) that there is a downward movement along the existing demand curvE.

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.

Net Markups

The amount added to the cost price of goods to cover overhead and profit, minus any discounts or allowances.

Retail Inventory Method

A method used in accounting to estimate the value of a store's merchandise based on the retail price of the inventory.

Net Markup

The percentage increase on the cost price of a product to arrive at its selling price, accounting for profit.