Refer to the Information Provided in Figure 12

question 159

Multiple Choice

Refer to the information provided in Figure 12.4 below to answer the question(s) that follow. Figure 12.4
There are two sectors in the economy, X and Y, and both are in long-run, zero-profit equilibrium at the intersections of S^{0 and D0.}
-Refer to Figure 12.4. Assume consumer preference changes toward X and away from Y. Ceteris paribus, a new general equilibrium will eventually be reached in sector Y with a price of ________ and a quantity of ________.

• A) P¹; Q¹
• B) P⁰; Q⁰
• C) P¹; Q⁰
• D) P⁰; < Q¹

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Definitions:

Profit Center

A profit center is a branch or division of a company that is responsible for generating its own revenue and profit, evaluated independently.

Financial Statements

Papers that offer a summary of a firm's financial status, featuring the balance sheet, income statement, and cash flow statement.

Income Statement

A financial report that shows a company's revenues, expenses, and net profit or loss over a specific period.

Balance Sheet

A document which condenses the details of a corporation's assets, liabilities, and owners' equity at a certain moment, offering a glimpse into its financial health.