When There Is a Shortage in the Market, Competition Will

question 90

Multiple Choice

When there is a shortage in the market, competition will:

• A) drive the price down to the equilibrium price.
• B) drive the price up to the equilibrium price.
• C) cause the demand curve to shift right.
• D) cause the supply curve to increase.

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Definitions:

GAAP

Generally Accepted Accounting Principles, which are a common set of accounting rules and standards used in the United States for financial reporting.

Internal Control

Systems and processes designed to ensure the reliability of financial reporting, compliance with laws and regulations, and effective and efficient operations.

Operating Segments

Components of a business for which separate financial information is available and evaluated regularly by the company's chief operating decision-maker in deciding how to allocate resources.

Reportable Segments

Parts of a company that are distinguishable by their operational activities, products, or services, and require separate financial reporting.