If Both Demand and Supply Increase, Price Will

question 227

Multiple Choice

If both demand and supply increase, price will

• A)always increase
• B)always decrease
• C)increase only if supply increases more than demand does
• D)increase only if demand increases more than supply does
• E)decrease only if supply increases less than demand does

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Definitions:

Services Performed

Refers to completed or rendered services that a company has provided to its customers, typically leading to service revenue.

Credit

Credit involves the granting of a loan or the creation of debt, where the borrower is obliged to pay back the amount at a later date, often with interest.

Recording Revenue

Recording revenue entails documenting the income a company receives from its business activities, such as the sale of goods and services, in the financial records.

Retained Earnings

The part of a company's earnings that is not distributed as dividends to its shareholders but instead is held back or saved.