-If Demand for a Good Is Represented by Curve D

question 115

Multiple Choice

-If demand for a good is represented by curve D in Figure 5-10,then an increase in supply of the good will cause

• A)the equilibrium quantity to rise,but seller's total revenue to fall
• B)the equilibrium quantity to fall,but seller's total revenue to rise
• C)both the equilibrium quantity and seller's total revenue to fall
• D)the equilibrium quantity to rise,but seller's total revenue will not change
• E)both the equilibrium quantity and seller's total revenue to rise

Recognize the characteristics and functions of different financial institutions and services.

Identify the characteristics of finance companies including their interest rates and requirements.

Understand the concept and tools of electronic funds transfer.

Recognize the concept of shadow banking and its differentiation from traditional banking.

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Definitions:

Cash Basis

An accounting method where revenues and expenses are recorded when they are actually received or paid out, not when they are earned or incurred.

Time Basis

A method of compensation or work arrangement based on the amount of time spent on a job rather than the task's outcome.

Expenses Recorded

The process of documenting all costs incurred during a specific period in the financial records, which are used to assess the company's profitability.

Current Ratio

A financial ratio that measures the number of times the firm can cover its current liabilities with its current assets.