Consider the Market for IPads

question 230

Multiple Choice

Consider the market for iPads.What happens if a fantastic new alternative tablet is developed by Samsung and,at the same time,a boat carrying a large shipment of iPads is attacked by pirates and sunk?

• A)Price decreases and quantity increases.
• B)Price increases and quantity increases.
• C)The change in price is indeterminate and quantity decreases.
• D)Price increases and the change in quantity is indeterminate.

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Definitions:

Bank Checking Account

An account at a bank or financial institution that allows for easy deposit and withdrawal of funds, typically used for daily transactions.

Petty Cash Fund

A small amount of cash kept on hand in a business for making minor, immediate purchases or reimbursements.

Accounts Payable

Liabilities representing amounts owed by a company to creditors for goods and services received.

Petty Cash Fund

A small amount of cash on hand used for covering minor or incidental expenses within a business.