We Can Use the Calculus of the Consumer Choice Model

question 72

Multiple Choice

We can use the calculus of the consumer choice model for each of the following EXCEPT:

• A) to see how the demand curve shifts when there is a discrete change in income or the price of the other good.
• B) to see how the demand curve shifts when tastes for a good change.
• C) to see how the supply curve shifts when tastes for a good change.
• D) to see the effects of a change in price of the good itself.

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Definitions:

Debt-Equity Ratio

The indicator displaying the equivalent contribution of equity and debt to a company's asset base financing.

Sustainable Growth Rate

The maximum rate at which a company can grow its revenues and profits without needing to increase financial leverage.

Debt-Equity Ratio

An indicator of a firm's use of financial debt, found by dividing the total amount of liabilities by the equity owned by stockholders.

Retention Ratio

The proportion of net income that is retained in the company rather than paid out to shareholders as dividends.