Suppose Supply Decreases and Demand Increases

question 24

Multiple Choice

Suppose supply decreases and demand increases. What effect will this have on the quantity?

• A) It will fall.
• B) It will rise.
• C) It may rise or fall.
• D) It will remain the same.

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Definitions:

Accounting Estimate

An approximation of a financial amount in the absence of precise data or measurements.

Reporting Entity

A business or organization that is required to prepare financial statements.

Operating Activity

Activities that constitute the primary or main activities of an entity, including cash flows related to sales, expenses, and other core business operations.

Cash Dividend

A direct payment of profits from a corporation to its shareholders, often distributed quarterly.