Figure 3-6 In Figure 3-6, Suppose D ₁ and S ₁ Indicate

question 151

Multiple Choice

Figure 3-6
In Figure 3-6, suppose D ₁ and S ₁ indicate initial conditions in the market for ice cream. Which of the following changes would tend to cause a shift from S ₁ to S ₂ in the market for ice cream?

• A) an increase in the price of sugar, an ingredient used to produce ice cream
• B) a decrease in the price of frozen yogurt, a substitute for ice cream
• C) abnormally hot weather that temporarily increases consumer desire for ice cream
• D) a decrease in the price of milk, an ingredient used to produce ice cream

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Definitions:

Strategy

It is a plan of action designed to achieve a long-term or overall goal.

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Assets required for a company to conduct its daily business operations, including property, plant, and equipment, but excluding investments and non-operational assets.

Cost Center

A department or unit within an organization that does not directly contribute to profit but incurs costs for its operation.

Responsibility Center

Any business segment whose manager has control over costs, revenues, or investments in operating assets.