Use the Figure Below to Answer the Following Questions

question 47

Multiple Choice

Use the figure below to answer the following questions.

Figure 3.5.1
-Initially, the demand curve for good A is D₂ in Figure 3.5.1. Suppose good B is a substitute for good A. If the price of B falls

• A)the price of A will rise.
• B)there will be a surplus of good A at P₂.
• C)the demand curve for good A will shift from D₂ to D₃.
• D)the equilibrium quantity of good A will increase.
• E)all of the above are true except B.

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Definitions:

Manufacturing Capacity

The maximum volume of products that can be produced in a given period under normal working conditions.

Overall Equipment Effectiveness

A measure of manufacturing productivity that combines availability, performance, and quality metrics of equipment.

Machinery

The machines, equipment, and devices that perform various tasks in the manufacturing of goods and provision of services.

Efficiency Rate

The ratio of the actual output produced to the expected standard output, utilized in assessing operational efficiency.