Exhibit 3-4 -Refer to Exhibit 3-4. If S₁ and D₁ Are the D₁

question 138

Multiple Choice

Exhibit 3-4
-Refer to Exhibit 3-4. If S₁ and D₁ are the original supply and demand curves and, ceteris paribus, demand shifts to D₂,

• A)the quantity supplied increases from Q₃ to Q₄.
• B)the quantity supplied increases from Q₂ to Q₃.
• C)supply decreases from Q₃ to Q₂.
• D)the quantity supplied increases from Q₂ to Q₄.
• E)the quantity demanded increases from Q₃ to Q₂.

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Definitions:

Rate of Markdown

The percentage decrease from the original price of an item to its reduced price.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding the cost of goods sold.

Operating Profit

Earnings from a company's core business operations, excluding deductions of interest and taxes.

Trade Discount

A reduction in the retail price of goods, offered by wholesalers or manufacturers to retailers.