Identify Equilibrium Values and Determine Which Are Stable and Which

question 9

Multiple Choice

Identify equilibrium values and determine which are stable and which are unstable.
-y = (y - 4) (y - 6) (y - 7)

• A) y = 7 is a stable equilibrium value and y = 6 and y = 4 are unstable equilibria.
• B) y = 4 is a stable equilibrium value and y = 6 and y = 7 are unstable equilibria.
• C) y = 6 is a stable equilibrium value and y = 4 and y = 7 are unstable equilibria.
• D) y = 5, y = 4 and y = 7 are unstable equilibria.

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Definitions:

Cash Flow Statement

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, separating activities into operating, investing, and financing.

Credit Policies

The guidelines that a company follows to determine the creditworthiness of customers and the terms under which credit will be extended.

Bad Debt Expense

The expense recognized when receivables are no longer collectible, reflecting estimated losses from extending credit.

Percentage Rate

A proportion, often expressed as a percent, used to determine the interest to be charged or paid on a financial instrument or the growth rate of an investment.