"Supply Creates Its Own Demand" Implies That

question 14

Multiple Choice

"Supply creates its own demand" implies that

• A) the very act of supplying a particular level of goods and services necessarily equals the level of goods and services demanded.
• B) the very act of demanding a particular level of goods and services necessarily equals the level of goods and services supplied.
• C) the government will buy up any surplus of goods and services in a country to avoid economic problems.
• D) the very act of supplying a particular level of goods and services will not necessarily equal the level of goods and services demanded.

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Definitions:

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Comparative Balance Sheet

Financial statements that present the financial position of a company at different points in time for comparison.

Common-Size Percentages

Financial analysis tool that converts income statement and balance sheet figures to percentages of a common base for comparison purposes.

Trend Percentages

An analysis technique that involves calculating the percentage change for a financial statement item over multiple periods to identify any patterns.