The Figure Given Below Represents the Equilibrium Price and Output

question 3

Multiple Choice

The figure given below represents the equilibrium price and output in the market for restaurant meals and delivery meals.
Figure 4.1

-Refer to Figure 4.1. Which of the following is represented by this figure?

• A) Delivery meals and restaurant meals are complementary goods.
• B) When producers of delivery and restaurant meals change their preferences, the consumers respond.
• C) The increase in demand for delivery meals could have been caused by a change in consumers' tastes.
• D) The fall in demand for restaurant meals was caused by an increase in the price for restaurant meals.
• E) The demand for delivery meals is less elastic than that for restaurant meals.

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Definitions:

Accounts Receivable Turnover

A ratio that measures how effectively a company collects its receivables, calculated by dividing total net sales by the average accounts receivable.

Inventory Turnover Ratio

A metric indicating how often a company's inventory is sold and replaced over a specific period, useful in evaluating the efficiency of inventory management.

Return on Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers.