An Increase in Demand and an Increase in Supply Will

question 37

Multiple Choice

An increase in demand and an increase in supply will:

• A)affect price in an indeterminate way and decrease the equilibrium quantity.
• B)increase price and increase the equilibrium quantity.
• C)affect price in an indeterminate way and increase the equilibrium quantity.
• D)decrease price and increase the equilibrium quantity.

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Definitions:

Future Value

The future value of a current asset on a certain date, estimated based on a projected growth or return rate.

Present Value

Present Value is a financial principle that calculates the current worth of a future amount of money or stream of cash flows given a specific rate of return.

Compound Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods.

Future Value

Future Value is the estimated amount of money an investment is projected to be worth at a specific date in the future, taking into account factors like interest rates or earnings.