(Figure: Goods with Fixed Capacities) the Graph Depicts a Small

question 124

Multiple Choice

(Figure: Goods with Fixed Capacities) The graph depicts a small network with fixed capacity. If capacity increases from S₀ to S₁

• A) D remains unchanged, and P increases.
• B) D rotates upward, and P increases.
• C) D rotates downward, and P decreases.
• D) D shifts parallel and to the right, and P increases.

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Definitions:

Principal and Third Party

Legal terms describing the major participant in a transaction (principal) and an outsider who has a lesser role (third party).

Agency Contract

A legal agreement wherein one party, the agent, agrees to act on behalf of another party, the principal, in business transactions.

Bound

Legally or morally obligated; a condition of being tied to an agreement or course of action.

Fictitious Principal

A non-existent entity created in a contractual agreement as the party for whom the agent acts.