Exhibit 3-16 -Refer to Exhibit 3-16.Which of the Following Is False

question 209

Multiple Choice

Exhibit 3-16

-Refer to Exhibit 3-16.Which of the following is false?

• A) Graph (1): There is a shortage of this good when the price is equal to P3.
• B) Graph (2): As supply increases, equilibrium quantity remains constant.
• C) Graph (3): As demand increases, equilibrium price remains constant.
• D) Graph (4): As supply changes, equilibrium price stays the same.

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Definitions:

Net Income

The net income of a company, which is calculated by deducting all expenses and taxes from the total revenue.

FOB Shipping Point

A shipping term indicating that the buyer assumes all costs and risks of loss or damage to the goods once they are shipped by the seller.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus cost of goods sold.

Delivery Expense

The cost incurred by a company to transport its goods to customers, including freight and shipping fees.