You Are Asked to Determine,other Things Equal,the Effects of a Given

question 78

Multiple Choice

You are asked to determine,other things equal,the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for,or supply (S) of,X, (2) the equilibrium price (P) of X and (3) the equilibrium quantity (Q) of X.
-Refer to the above.A reduction in the number of firms producing X will:

• A) increase D,increase P,and increase Q.
• B) increase S,decrease P,and increase Q.
• C) decrease S,increase P,and decrease Q.
• D) decrease S,decrease P,and increase Q.

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Definitions:

Revenues

The cumulative income derived from transactions involving goods or services tied to the main business functions.

Expenses

Costs incurred by a business in the process of earning revenue, which are not directly tied to the production of goods or services.

Accounting Standard-Setting Body

An organization that establishes benchmarks or rules for preparing and presenting financial statements and other related accounting practices.

Securities and Exchange Commission

The U.S. federal agency responsible for regulating the securities industry and ensuring public companies adhere to disclosure laws.