FIGURE 3-2 Refer to Figure 3-2

question 68

Multiple Choice

FIGURE 3-2 Refer to Figure 3-2.A shift of the supply curve for energy-efficient light bulbs from S to S² could be caused by

• A)an increase in the price of energy-efficient light bulbs.
• B)a decrease in the price of energy-efficient light bulbs.
• C)an increase in the number of suppliers.
• D)the elimination of existing government subsidies to suppliers of energy-efficient light bulbs.
• E)a change in consumers' preferences away from ordinary light bulbs.

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Definitions:

Capital Cost Allowance

Capital cost allowance is a tax deduction available in Canada for depreciable property, allowing businesses to write off the cost of assets over a period of time.

Cash Operating Costs

Expenses related directly to the operations of a business, excluding financing costs.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income levels, jurisdictions, and other factors.

WACC

The Weighted Average Cost of Capital is a metric that determines a firm's cost of capital by assigning proportional weights to each type of capital it uses.