Use the Following to Answer Questions

question 189

Multiple Choice

Use the following to answer questions:
Figure: Industry Firms
-(Figure: Industry Firms) Refer to the figures. The market is characterized by demand curve D₂ and supply curve S₁. The firms in the industry are earning ________, which will cause the______________.

• A) profit; supply curve to shift to S₂
• B) losses; demand curve to shift to D₁
• C) profit; supply curve to shift to S₂ and the demand curve to shift to D₁
• D) losses; supply curve to shift to S₂ and the demand curve to shift to D₁

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Definitions:

Buying

The process of acquiring goods or services, typically for business operations or personal use.

Employee Morale

The overall satisfaction, outlook, and feelings of well-being that an employee experiences at their workplace.

By-products

Secondary products that are produced incidentally in the process of manufacturing the main product, often with economic value and varying applications.

Net Realisable Value

The estimated selling price of goods, minus the costs of their sale or disposal.