Which of the Following Is Likely to Result in a Lower

question 217

Multiple Choice

Which of the following is likely to result in a lower equilibrium price?

• A)​An increase in both demand and supply.
• B)​A decrease in both demand and supply.
• C)​An increase in demand and a decrease in supply.
• D)​A decrease in demand and an increase in supply.

Apply theoretical knowledge of budgeting to practical business scenarios.

Understand the concept of budgeting in different business scenarios.

Calculate activity variances and identify them as favorable or unfavorable.

Prepare flexible budgets based on actual activity levels.

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Definitions:

Price Level

Indicates the overall level of prices for goods and services in an economy at a specific point in time, reflecting the economy's cost of living.

Aggregate Demand

Aggregate demand for products and services within an economy at a certain uniform price point during a specified period.

Federal Budget Deficit

The financial situation when a government's expenditures exceed its revenues within a fiscal year, leading to borrowing or debt accumulation.

Inflation

The rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of money.