Use the Figure to Answer the Following Question(s)

question 125

Multiple Choice

Use the figure to answer the following question(s) .
Figure 12-2
-If an unanticipated increase in demand in Figure 12-2 shifts the demand for accountants from D₁ to D₂, how will the higher level of demand influence the wages of accountants in the short run and the long run?

• A) In the short run, wages will increase to W₂, but the wage increase will be smaller in the long run.
• B) In the short run, wages will be less than W₂, but in the long run, they will rise to W₂.
• C) In the short run, wages will increase to W₂, and in the long run, they will be even higher than W₂.
• D) Employment will increase, but the higher level of demand will not alter the wages of accountants.

---

Definitions:

Variable Interest Entity

A legal entity in which an investor holds a controlling interest that is not based on the majority of voting rights but on contractual or other financial arrangements.

Consolidated Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows from both operating and investing activities of the parent company and its subsidiaries.

Investment Account

An account held by an individual or entity with a financial institution, primarily used for holding and trading securities, stocks, bonds, and other investments.

Percent Ownership

The proportion of a company's shares owned by an individual or entity, often expressed as a percentage of the total shares outstanding.