Figure: Piano Lessons Which Event Would Shift the Demand

question 237

Multiple Choice

Figure: Piano Lessons Which event would shift the demand curve for piano lessons from D₁ to D_2, as shown in the diagram?

• A) an increase in the price of piano lessons
• B) a decrease in the price of piano lessons
• C) a decrease in the price of pianos
• D) an increase in the price of pianos

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Definitions:

Cash Expenses

Outlays of cash during a given period for direct charges such as wages, rent, and utilities.

Net Present Value (NPV)

The gap between the current value of cash entering and the current value of cash exiting over a timeframe, employed in investment planning to evaluate the profitability of projects.

Capital Cost Allowance (CCA)

Depreciation for tax purposes, not necessarily the same as depreciation under International Financial Reporting Standards; depreciation method under Canadian tax law allowing for the accelerated write-off of property under various classifications.