Which of the Following Scenarios Best Describes the Change in the Equilibrium

question 154

Multiple Choice

Which of the following scenarios best describes the change in the equilibrium shown in the accompanying graph?

• A) firms entering the market
• B) firms leaving the market
• C) buyers entering the market
• D) buyers leaving the market
• E) an input cost decreasing

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Definitions:

Cost of Goods SOLD

Expenses directly associated with the creation of goods a company sells, including costs for materials and labor.

Operating Expenses

Recurring expenses related to the central operations of a business, such as rent, utilities, and payroll, excluding costs of goods sold.

Earnings Per Share

A measure of a company's profitability, calculated as the net income divided by the number of outstanding shares of common stock.

Common Stockholders

Individuals or entities that own shares of common stock in a corporation, giving them rights to dividends and voting in shareholder meetings.