If supply and demand both increase then equilibrium price will also increase. True or False
1 answer:
Answer:
This statement is false.
Explanation:
The change in the equilibrium price due to a change in in an increase in both demand and supply cannot be predicted without knowing the magnitude of the increase.
If the proportionate increase in the demand is greater than the increase in supply, the equilibrium price will increase.
If the proportionate increase in the supply is greater than the increase in demand, the equilibrium price will decrease.
If the increase in demand is proportionately equal to the increase in supply, the equilibrium price will remain the same.
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Answer:
- Accounting Equation = The basic tool of accounting, stated as Assets = Liabilities + Equity
- Asset = An economic resource that is expected to be of benefit in the future
- Balance sheet = Reports on an entity's assets, liabilities, and stockholders' equity as of a specific date
- Expense = Decreases in equity that occur in the course of selling goods or services
- Income statement = Reports on an entity's revenues, expenses, and net income or loss for the period
- Liability = Debts that are owed to creditors
- Net income = Excess of total revenues over total expenses
- Net loss = Excess of total expenses over total revenues
- Revenue = Increases in equity that occur in the course of selling goods or services
- Stmt. of cash flows = Reports on a business's cash receipts and cash payments during a period
- Stmt. of ret. earnings = Reports how the company's retained earnings 'balance changed from the beginning to the end of the period
Explanation:
- Accounting Equation = The basic tool of accounting, stated as Assets = Liabilities + Equity
- Asset = An economic resource that is expected to be of benefit in the future
- Balance sheet = Reports on an entity's assets, liabilities, and stockholders' equity as of a specific date
- Expense = Decreases in equity that occur in the course of selling goods or services
- Income statement = Reports on an entity's revenues, expenses, and net income or loss for the period
- Liability = Debts that are owed to creditors
- Net income = Excess of total revenues over total expenses
- Net loss = Excess of total expenses over total revenues
- Revenue = Increases in equity that occur in the course of selling goods or services
- Stmt. of cash flows = Reports on a business's cash receipts and cash payments during a period
- Stmt. of ret. earnings = Reports how the company's retained earnings 'balance changed from the beginning to the end of the period
