Assume the Typical Shapes of the Demand and Supply Curves

question 95

Multiple Choice

Assume the typical shapes of the demand and supply curves.If both demand and supply increase in a competitive market,the equilibrium price will

• A) always rise
• B) always fall
• C) rise if demand increases more than supply increases
• D) fall if demand increases more than supply increases
• E) remain unchanged

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Definitions:

Cost of Goods Sold

Represents the direct costs attributable to the production of the goods sold by a company, including material, labor, and manufacturing overhead costs.

Average Sale Period

The average time it takes for a company to sell its inventory or products, often used to assess the efficiency of its sales processes and inventory management.

Balance Sheet

A balance sheet is a financial statement that provides a snapshot of a company's financial position, showing assets, liabilities, and shareholders' equity at a specific point in time.

Debt-to-Equity Ratio

A financial ratio indicating the relative proportion of shareholder's equity and debt used to finance a company's assets.