A Simultaneous Shift to the Right of Both Supply and Demand

question 22

Multiple Choice

A simultaneous shift to the right of both supply and demand will:

• A)increase the equilibrium price
• B)decrease the equilibrium price
• C)increase the equilibrium quantity
• D)decrease the equilibrium quantity

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Definitions:

Goodwill

A non-physical asset that is recognized when one business buys another at a cost exceeding the fair market value of its net recognizable assets.

Goodwill

An intangible asset that represents the premium paid over the fair value of the net identifiable assets of a company during an acquisition.

Initial Value Method

An accounting method used to record investments at their acquisition cost.