An Increase in the Equilibrium Price for a Product Will

question 27

Multiple Choice

An increase in the equilibrium price for a product will result

• A)when the quantity demanded for the product exceeds the quantity supplied.
• B)when there is a decrease in supply and an increase in demand for the product.
• C)when there is a decrease in supply and a decrease in demand for the product.
• D)when there is an increase in demand and an increase in the number of firms producing the product.

---

Definitions:

Equipment

Tangible property used in the operation of a business, such as machinery, computers, and furniture, often subject to depreciation over its useful life.

Current Cash Distribution

Current Cash Distribution refers to the amount of cash distributed to the investors or partners of a business at the present time.

Long-term Capital Gains

Profits from the sale of an asset held for more than a year, generally taxed at lower rates than ordinary income.

Ordinary Income

Income earned from providing services or the sale of goods, typically subject to standard tax rates, as opposed to income classified as capital gains.