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Exhibit 4-2 Supply and Demand Curves Beginning from an Equilibrium

question 75

Multiple Choice

Exhibit 4-2 Supply and demand curves Exhibit 4-2 Supply and demand curves   Beginning from an equilibrium at point E<sub>1</sub> in Exhibit 4-2, an increase in demand for good X, other things being equal, would move the equilibrium point to: A) E<sub>1</sub>, no change. B) E<sub>2</sub>. C) E<sub>3</sub>. D) E<sub>4</sub>. Beginning from an equilibrium at point E1 in Exhibit 4-2, an increase in demand for good X, other things being equal, would move the equilibrium point to:


Definitions:

Return On Assets

A profitability ratio that indicates how efficiently a company uses its assets to produce profit, calculated by dividing net income by total assets.

Net Profit Margin

A financial performance metric that shows the percentage of sales that has turned into profits, calculated by dividing net profit by revenue.

Price/Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate a company's financial health and growth prospects.

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