Exhibit 3-11 Demand and Supply Curves in Exhibit 3-11

question 3

Multiple Choice

Exhibit 3-11 Demand and supply curves In Exhibit 3-11, in Panel A the movement from A to C describes a(n) :

• A)ambiguous change in price and a decrease in quantity.
• B)increase in price and an ambiguous change in quantity.
• C)increase in both price and quantity.
• D)decrease in both price and quantity.
• E)change in supply that dominates a change in demand.

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Definitions:

Common Shareholders

Individuals or entities that own common shares in a company, representing ownership stake and usually having voting rights.

Increased Profits

An enhancement in the net income generated by a business, reflecting an improvement in operational efficiency or revenue growth.

Rich Vein of Gold

A metaphor indicating a highly profitable and abundant source or opportunity.

Convertible Preferred Shareholders

Shareholders who own shares that can be converted into a fixed number of common shares, usually at the discretion of the shareholder.