Suppose That Initially, the Equations for Demand and Supply Are

question 15

Multiple Choice

Suppose that initially, the equations for demand and supply are Qd = 48 - 4P and Qs = 4P - 16, respectively.If the quantity demanded increases by 12 at every price (so that the demand curve shifts to the right) , the equilibrium price will change from:

• A)$8 to $9.50.
• B)$8 to$12.2.2.2.
• C)$12 to $9.5.
• D)$9.50 to$8.

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Definitions:

Accumulated Depreciation

Accumulated depreciation represents the total amount of depreciation expense that has been recorded for an asset since its acquisition.

Recognized Gain

The amount of profit that is reported for accounting or tax purposes, realized upon the sale or exchange of an asset.

Financing Charges

Costs associated with borrowing money, including interest, fees, and other charges.

EBIT

A financial metric representing a company's profit before deducting expenses for interest and income taxes.