Use the Figure Below to Answer the Following Questions

question 29

Multiple Choice

Use the figure below to answer the following questions.
Figure 3.5.1
-If the demand curve is D₂ in Figure 3.5.1,

• A)the equilibrium price is P₂ and the equilibrium quantity is Q₂.
• B)the equilibrium price is P₂ and the equilibrium quantity is Q₀.
• C)there is a shortage in the amount of Q₂ - Q₀.
• D)a rise in price will shift the demand curve to D₃.
• E)price will rise.

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Definitions:

Venture Capitalism

A form of private equity and financing that investors provide to startup companies and small businesses with long-term growth potential.

Factoring

A financial transaction where businesses sell their accounts receivable to a third party at a discount for immediate cash.

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A retail industry metric comparing the revenue earned from established stores in a certain period to the revenue during a similar period in the past.

Asset Intensity

Amount of assets needed to generate a given level of sales.