If the Price of Lumber Rises, Then, in the Market

question 335

Multiple Choice

If the price of lumber rises, then, in the market for sawdust

• A) the supply curve of sawdust shifts leftward.
• B) the supply curve of sawdust shifts rightward.
• C) there is a movement downward along the supply curve for sawdust.
• D) there is a movement upward along the supply curve for sawdust.

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Definitions:

Retained Earnings

The portion of a company's profits that is kept or retained within the business instead of being paid out to shareholders as dividends.

Stockholders' Equity

The stake in a company's assets left over after all debts have been cleared, frequently called shareholders' equity.

Revenues

Income that a company receives from its normal business activities, usually from the sale of goods and services to customers.

Gains

Result primarily from the disposal of assets for more than their cost minus the amount of cost depreciated in the past.