Refer to the Graph Shown

question 2

Multiple Choice

Refer to the graph shown. The diagram demonstrates that an increase in the price of soda will:

• A) raise the quantity demanded of soda.
• B) reduce the quantity demanded of soda.
• C) raise the quantity demanded of chocolate bars.
• D) raise the consumer's available income.

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Definitions:

Business for Profit

Organizations that operate with the primary goal of earning financial returns for their owners or shareholders.

Limited Liability Corporation

A business structure that offers its owners protection from personal liability for the debts of the company, while allowing them to enjoy the tax and operational benefits of a partnership.

Sole Proprietorship

A simple business structure where a single individual owns, manages, and is responsible for all aspects of the business, including liabilities.

Partnership

A form of business where two or more people agree to contribute resources to start and operate a business together.