Which of the Following Statements Is True

question 178

Multiple Choice

Which of the following statements is true?

• A)An increase in demand causes a change in equilibrium price; the change in price does not cause a further change in demand or supply.
• B)A decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in demand.
• C)If both demand and supply increase there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease.
• D)If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater.

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Definitions:

Financial Statements

Compiled reports detailing an organization's financial status, including the balance sheet, income statement, and cash flow statement, over a specific period.

Capital Interest

The portion of an investment or equity that represents the initial sum invested or the value contributed by an investor or partner.

Capital Account

A financial record that shows the changes in business ownership over a period. It includes capital contributions and withdrawals by owners.

Partner Capital Accounts

Accounts reflecting the individual investments of partners in a partnership, including their share of profits, losses, and any withdrawals.