Exhibit 1-4 According to the Curve in Exhibit 1-4

question 48

Multiple Choice

Exhibit 1-4 According to the curve in Exhibit 1-4, if P increases from $10 to $14, Q

• A)stays the same
• B)Q increases from 6 to 8
• C)Q increases from 6 to 10
• D)Q decreases from 6 to 2
• E)Q decreases from 6 to 0

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Definitions:

Net Operating Income

Income before interest and income taxes have been deducted.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including labor and materials.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity of the business.

Debt-to-Equity Ratio

A financial metric that shows the comparative amount of debt and shareholders' equity utilized to fund a company's assets.