Figure 16.1.1

question 80

Multiple Choice

Figure 16.1.1
-Refer to Figure 16.1.1 above. After the shift in supply in panel (a) , the higher price of movie tickets causes:

• A) demand to decrease in panel (a), which feeds back into (b), causing demand to increase in panel (b).
• B) demand to increase in panel (b) and a higher price, which feeds back as higher demand in panel (a).
• C) demand to increase in panel (b), but not as much as an increase in demand in panel (a).
• D) demand to decrease in both panels, which causes even further decreases in demand.

---

Definitions:

Net Present Value

The discrepancy between the current value of incoming cash and the current value of outgoing cash throughout a given timeframe.

Cash Savings

The amount of money a company or individual keeps on hand that is not invested, spent, or used in paying off debts.

Salvage Value

The estimated value for which an asset can be sold at the end of its useful life, typically used for depreciation calculations.

Internal Rate

Often referred to as the internal rate of return (IRR), it is a financial metric used to estimate the profitability of potential investments.