Exhibit 3-4 -Refer to Exhibit 3-4. If S₂ and D₂ Are the D₂

question 24

Multiple Choice

Exhibit 3-4
-Refer to Exhibit 3-4. If S₂ and D₂ are the original supply and demand curves and, ceteris paribus, supply shifts to S₁,

• A)the quantity demanded decreases from Q₄ to Q₂.
• B)supply decreases.
• C)the quantity demanded increases from Q₂ to Q₄.
• D)the quantity supplied increases from Q₃ to Q₄.
• E)the equilibrium price falls from P₂ to P₁.

---

Definitions:

Process Layout

An arrangement of resources in a manufacturing or service system according to the sequence of operations that need to be performed.

Competitive Advantage

The facet of a business that it does better than all of its competitors.

Escalation Lease

A lease agreement that includes provisions for rent increases over the lease term.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.