If Both the Demand Curve and the Supply Curve Shift

question 140

Multiple Choice

If both the demand curve and the supply curve shift to the right, we can unambiguously conclude that the

• A) market clearing price will increase.
• B) market clearing price will decrease.
• C) equilibrium quantity will increase.
• D) equilibrium quantity will decrease.

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Definitions:

Resale Value

The estimated amount for which an asset can be sold at the end of its useful life.

Office Furniture

Furniture and related items used in offices, such as desks, chairs, and file cabinets.

Straight-Line Method

A depreciation method that allocates an equal amount of depreciation each year over the useful life of the asset.

Resale Value

The likely selling price of a good or asset if sold at a future date, considering depreciation or appreciation.