Which of the Following Would Cause Both the Equilibrium Price

question 43

Multiple Choice

Which of the following would cause both the equilibrium price and equilibrium quantity of cookies to decrease?

• A)a rise in the price of milk (a complement)
• B)a rise in consumer incomes
• C)a rise in the price of cookie dough
• D)a drop in the price of cookie dough
• E)a rise in the price of crackers (a substitute)

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Definitions:

Operating Assets

Assets used by a business in its operational activities to generate revenue, excluding investments and non-operating assets.

Residual Income

The income that exceeds the minimum required return on investment or capital; often used in performance measurement and evaluation.

Minimum Required Rate

The lowest return on investment that a company or individual deems acceptable, often used in financial analysis and capital budgeting.

Operating Assets

Operating assets are the assets a company uses in its daily operations to generate revenue, such as inventory, property, plant, and equipment.