Which of the Following Would Cause Both the Equilibrium Price

question 33

Multiple Choice

Which of the following would cause both the equilibrium price and equilibrium quantity of potatoes (assume that potatoes are an inferior good) to decrease?

• A)An increase in consumer income.
• B)A freeze that sharply reduces potato output.
• C)A decrease in consumer income.
• D)A technological advancement that results in a bumper crop of potatoes.

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Definitions:

Financial Flexibility

The ability of an entity to initiate actions and adapt to changes in its financial operations that maximize shareholders' value over time.

Resource Structure

The composition and allocation of resources within an organization or economy, including human, financial, and material resources.

Financial Structure

The mix of debt and equity that a company uses to finance its operations and growth.

Stockholders' Equity

Stockholders' equity represents the residual interest in the assets of an entity after deducting liabilities, essentially the net worth attributable to shareholders.