Figure 4-6 -Refer to the Figure 4-6.What Happens If the Demand Curve

question 347

Multiple Choice

Figure 4-6

-Refer to the Figure 4-6.What happens if the demand curve shifts from D₁ to D

• A)Firms would be willing to supply less than before.
• B)People are less willing to buy the product at any price than before.
• C)People are now more willing to buy the product at any price than before.
• D)The price of the product has decreased, causing consumers to buy more of the product.

---

Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds; it is a non-operating expense shown on the income statement.

Straight-line Amortization

A method of reducing the carrying amount of an intangible asset over a fixed period of time in a systematic and rational manner.

Premium Amortization

The gradual expense or reduction of the premium paid above the par value of a debt security over its remaining term.

Interest Expense

The charge an entity bears for the funds it has borrowed over a set period.