Suppose That the Market for Computers Is Initially in Equilibrium

question 66

Multiple Choice

Suppose that the market for computers is initially in equilibrium. Further suppose that there is an increase in the price of computer software. Which of the following accurately describes the new equilibrium in the computer market?

• A)The equilibrium price will rise; the equilibrium quantity will fall.
• B)The equilibrium price will rise; the equilibrium quantity will rise.
• C)The equilibrium price will fall; the equilibrium quantity will fall.
• D)The equilibrium price will fall; the equilibrium quantity will rise.

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Definitions:

Operating Activities

Transactions related to the core business functions of a company, such as sales and purchase of goods and services.

Cash Dividends

Payments made by a corporation to its shareholder members. It is the share of profits distributed in cash.

Statement Of Cash Flows

A financial document summarizing total cash inflows from operational activities and external investments alongside outflows for business operations and investment expenditures over a specific timeframe.

Investing Activities

Finance-related activities in a company that involve acquiring or disposing of long-term assets.