Figure 3-11 -In Figure 3-11, Suppose D₁ and S₁ Indicate Initial Conditions

question 108

Multiple Choice

Figure 3-11
-In Figure 3-11, suppose D₁ and S₁ indicate initial conditions in the market for kitchen cabinets. Which of the following would tend to cause the supply curve to shift from S₁ to S₂?

• A) the invention of "folding" plates and cups that take up substantially less storage space in the kitchen
• B) a decrease in consumer income
• C) a decrease in the price of wood, a resource used to produce kitchen cabinets
• D) an increase in the price of steel hinges, a resource used to produce kitchen cabinets

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Definitions:

Net Margin

A profitability metric calculated as net income divided by revenue, expressing the percentage of revenue that remains as profit after all expenses are deducted.

ISO 9000

A set of international standards on quality management and quality assurance developed to help companies effectively document the quality system elements required for maintaining an efficient quality system.

International Marketplace

The global economic environment in which businesses operate, allowing for the exchange of goods and services across national borders.

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Goals that relate to the consistency and excellence of a product or service, usually defined in a company's quality management system.