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Blizzard [7]
3 years ago
7

If market demand increases and market supply decreases, the change in equilibrium price is unpredictable without first knowing t

he exact magnitudes of the demand and supply changes.
a. True
b. False
Business
1 answer:
Alecsey [184]3 years ago
8 0

Answer:

The given statement is false.

Explanation:

A decrease in the market demand will cause the demand curve to shift to the right. While a decrease in the supply will cause the supply curve to shift to the left.  

The market equilibrium price is determined by the intersection of demand and supply. The price, as a result, will increase. The extent of increase in price depends on the magnitudes of change in demand and supply.  

The change in equilibrium quantity, however, in this case, is unpredictable without knowing the extent of changes in demand and supply.

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The correct answer to this open question is the following.

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6 0
2 years ago
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zzz [600]

Answer & Explanation:

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So the new value that must be recognized as asset value in the Statement of Financial Position for the year is $3700.

So the option C is correct.

8 0
3 years ago
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