Figure 9-3 Suppose That British Incomes Rise Relative to Incomes

question 179

Multiple Choice

Figure 9-3 Suppose that British incomes rise relative to incomes in the United States. Then, in Figure 9-3

• A) the demand curve will shift from D₁ to D₂
• B) the demand curve will shift from D₂ to D₁
• C) the supply curve will shift from S₁ to S₂
• D) the supply curve will shift from S₂ to S₁
• E) neither the demand for nor the supply curve will shift

---

Definitions:

Volume-based Costing

A costing method that allocates overhead expenses based on the volume of goods produced or services provided.

Quantitative Analysis

The use of mathematical and statistical methods to evaluate financial and operational information for decision-making.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and therefore should not influence future business decisions.

Opportunity Costs

The cost of the next best alternative that is foregone when a decision is made.