-In the Above Figure, If D₂ is the Original Demand

question 401

Multiple Choice

-In the above figure, if D₂ is the original demand curve and the price of a substitute in consumption rises, which price and quantity might result?

• A) point a, with price P₂ and quantity Q₂
• B) point b, with price P₁ and quantity Q₁
• C) point c, with price P₃ and quantity Q₃
• D) point d, with price P₁ and quantity Q₃

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Definitions:

Net Cash Flow

The difference between a company's cash inflows and cash outflows for a given period.

Investing Activities

Transactions and events that relate to the acquisition and disposal of long-term assets and other investments not considered as cash equivalents.

Dividend Revenue

Income received from owning shares in a company, typically paid out from the company's profits.

Investing Activities

Investing activities involve the purchase and sale of long-term assets and other investments, not including cash equivalents, as part of a company’s capital allocation strategy.