The Demand for Commodity X Is Represented by the Equation

question 116

Multiple Choice

The demand for commodity X is represented by the equation P = 10 - 0.2Q and supply by the equation P = 2 + 0.2Q.Refer to the above information.If demand changes from P = 10 - .2Q to P = 7 - .3Q, we can conclude that:

• A)demand has increased.
• B)demand has declined.
• C)supply will increase.
• D)supply will decrease.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.

Sale Of Equipment

The process of disposing of fixed assets, such as machinery, for cash or other compensation.

Operating Activities

These are the core activities that generate revenue and involve expenses for a company, including sales and service provision.

ASPE

Accounting Standards for Private Enterprises; a set of accounting standards for private companies in Canada, focusing on simplicity and cost-effectiveness.