Suppose That Demand for Tablets Increases, and Simultaneously, the Supply

question 10

Multiple Choice

Suppose that demand for tablets increases, and simultaneously, the supply of tablets increases. Which of the following would you conclude definitely will occur in the market for tablets?

• A)The market clearing price will rise.
• B)The market clearing price will fall.
• C)The equilibrium quantity will rise.
• D)The equilibrium quantity will fall.

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Definitions:

Net Profit Margin

A financial ratio that shows the percentage of profit a company generates from its revenues.

Operating Income

Earnings before interest and taxes, representing the profit generated from a company's core business operations.

Net Income

The profit a company generates after all expenses, taxes, and costs have been subtracted from total revenue, indicating financial health.

Income Tax Expense

The accounting term for income taxes due to federal, state, and local governments within a given fiscal period.