The Following Graph Shows the Supply of Movie Downloads

question 118

Multiple Choice

The following graph shows the supply of movie downloads. If price changes from $0.50 to $2.00, what will be the change in the market quantity supplied?

• A) 1 movie per week
• B) 6 movie per week
• C) 7 movie per week
• D) 8 movie per week

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Definitions:

Cost of Goods Sold

The direct costs attributed to the production of goods sold by a business, including materials and labor.

Net Sales

The revenue a company generates from sales after deducting returns, allowances for damaged or missing goods, and discounts.

Vertical Analysis

A technique for analyzing financial statements where every item under the three key account categories (assets, liabilities, and equity) on a balance sheet is shown as a percentage of the total for each category.

Operating Expenses

Costs related to the operation of a business, excluding the cost of goods sold, financing costs, and taxes.