Refer to the Graph Above.If Demand Decreased

question 93

Multiple Choice

Refer to the graph above.If demand decreased:

• A) quantity would stay the same and price would increase.
• B) quantity would stay the same and price would decrease.
• C) price would stay the same and quantity would decrease.
• D) price would stay the same and quantity would increase.

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Definitions:

Cash Inflows

Funds that are received, whether from business operations, investment returns, or financing activities.

Certainty Equivalent Approach

This is a method used in financial analysis to determine the value of risky investments by finding the risk-free cash flow amount that an investor would accept instead of taking a risk.

Approach

A method or strategy used to tackle a problem or task.

Pure Play Method

A valuation technique used in equity analysis that compares a company to others in the same industry or sector with similar operational characteristics.