A Decline in Market Demand in a Competitive Industry Will

question 70

Multiple Choice

A decline in market demand in a competitive industry will result in a(n) _____

• A)increase in the equilibrium price.
• B)decrease in the number of firms in the industry in the short run.
• C)economic profit for all firms in the industry.
• D)decrease in the equilibrium quantity.
• E)rightward shift of the market supply curve in the short run.

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Definitions:

Measurement Principle

The accounting principle that determines the criteria under which financial elements are quantified in the financial statements.

Actual Cost

The actual expenditure incurred on goods or services, including all amounts spent to acquire them, minus any discounts or rebates.

Cash-Equivalent Amount

The value of an asset that can easily be converted into a known amount of cash within a short period.

Fraud Triangle

A model explaining the factors that cause an individual to commit fraud, including pressure, opportunity, and rationalization.