Exhibit 4-5 Supply and Demand Curves for Computers

question 105

Multiple Choice

Exhibit 4-5 Supply and demand curves for computers
Which of the following changes could cause the computer market to change as shown in Exhibit 4-5?

• A) Lower costs for computer chips and motherboards.
• B) The failure of several computer manufacturers.
• C) Higher prices for computer software.
• D) More features and greater ease of use.

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Definitions:

External Financing Needed

The amount of funding a company needs to support its operations and growth activities, beyond what can be generated internally.

Fixed Assets

Long-term tangible assets that are used in the operations of a business, such as buildings and machinery.

Net Working Capital Turnover

A measure of how effectively a company uses its net working capital to generate sales.

Total Fixed Assets

The combined value of all long-term assets that a company owns, which are not expected to be converted to cash within a year.