Use the Following to Answer Question

question 193

Multiple Choice

Use the following to answer question:
-(Figure: Consumer Surplus I) Look at the figure Consumer Surplus I.If the price falls from P₂ to P₁,consumer surplus increases by the area:

• A)ABP₂.
• B)AFP₁.
• C)BGF.
• D)P₁P₂BF.

---

Definitions:

Horizontal Analysis

A financial analysis technique that compares historical financial information over a series of reporting periods.

Comparative Financial Statements

Financial reports that present the financial position and results of operations for a business across two or more periods, facilitating analysis over time.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets.

Inventory

The goods and materials a business holds for the purpose of resale or production.