If the Demand for a Company's Stock Decreases​, Supply Remaining

question 19

Multiple Choice

If the demand for a company's stock decreases​, supply remaining unchanged,

• A)​both its equilibrium price and quantity will rise.
• B)​both its equilibrium price and quantity will fall.
• C)​its equilibrium price will rise while its equilibrium quantity will fall.
• D)​its equilibrium price will fall while its equilibrium quantity will rise.

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Definitions:

Normal Balance

The side of an account (debit or credit) where increases in the account are recorded, reflecting the account's usual positive balance.

Expense

Outflows or other using up of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major operations.

Credit

A bookkeeping entry that increases the value of liabilities or equity accounts, or decreases the value of an asset or expense account.

Journal

A detailed record where all financial transactions of a business are initially recorded.