There is a technological advance in the production of ice cream. As a result, the supply curve of ice cream shifts ________ and ________.
A) leftward; both the equilibrium price and equilibrium quantity fall
B) rightward; both the equilibrium price and equilibrium quantity fall
C) rightward; the equilibrium price falls while the equilibrium quantity increases
D) rightward; both the equilibrium price and equilibrium quantity rise
Question 2
Kevin deposits a certain sum in a bank at an annual compounded rate of interest for two years. Interest in the second year will be calculated on:
A) the principal amount only.
B) the amount in the account after one year.
C) the sum of the principal amount and the amount in the account after one year.
D) the difference in the principal amount and the amount in the account after one year.
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