When the Price of Inputs Increase

question 148

Multiple Choice

When the price of inputs increase:

• A) the supply curve shifts down and to the right.
• B) the supply curve shifts up and to the left.
• C) there is an upward movement along the supply curve.
• D) there is a downward movement along the supply curve.

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Definitions:

Depreciation

The accounting process of allocating the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Tax Rate

The percentage at which an individual or corporation is taxed by the government on their income or profits.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating its operational liquidity.

Operating Cash Flows

The cash generated from the normal operations of a business, excluding cash movements from investing and financing activities.