Refer to the Graph Shown

question 113

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:

Book Value

The value of a company's asset as it appears on the balance sheet, calculated as the cost of the asset minus accumulated depreciation.

Merchandise Inventory

Goods or products that a retailer, wholesaler, or distributor holds for the purpose of selling to customers.

Gain on Realization

Profit recognized from selling an asset for more than its book value.

Loss or Gain

The financial result from business transactions, investments or other financial events, indicating a profit (gain) or a deficit (loss).