Use the Figure Below to Answer the Following Questions

question 77

Multiple Choice

Use the figure below to answer the following questions. Figure 9.1.2
-Refer to Figure 9.1.2.Which budget line has the lowest relative price for music downloads?

• A)DA
• B)DB
• C)DC
• D)The relative price is equal for all three budget lines.
• E)Cannot be determined without studying the indifference curves.

---

Definitions:

Realised Profit

Profit that has been made from completed transactions as opposed to estimated gains based on the current market valuation.

Investment in Associate

Investment in another entity where the investor has significant influence over the investee but does not control or jointly control it, usually represented by ownership of 20% to 50% of the voting stock.

Share Capital

The funds raised by a company through the issuance of shares to investors, representing the equity stake of shareholders.

Retained Earnings

The portion of a company’s profits that is kept or retained and not distributed to shareholders as dividends.