Table 7-11 -Refer to Table 7-11.Both the Demand Curve and the Supply

question 329

Multiple Choice

Table 7-11

-Refer to Table 7-11.Both the demand curve and the supply curve are straight lines.If 6 units are bought and sold,then total surplus is

• A) $18 lower than it would be if the equilibrium number of units were bought and sold.
• B) $22 lower than it would be if the equilibrium number of units were bought and sold.
• C) $26 lower than it would be if the equilibrium number of units were bought and sold.
• D) $6 higher than it would be if the equilibrium number of units were bought and sold.

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Definitions:

IRR

Internal Rate of Return; a financial metric used to estimate the profitability of potential investments.

NPVs

NPVs, or Net Present Values, is a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.

Expansion

The process by which a company grows in size, scope, or production capacity, often through increased output or market presence.

Products

Goods or services offered by a company to customers in the marketplace.