Figure 3.8 -Refer to Figure 3.8. the Graph in This Figure Illustrates

question 17

Multiple Choice

Figure 3.8

-Refer to Figure 3.8. The graph in this figure illustrates an initial competitive equilibrium in the market for sugar at the intersection of D₁ and S₁ (point A) . If there is an increase in the price of fertiliser used on sugar cane and there is a decrease in tastes for sugar-sweetened soft drinks, how will the equilibrium point change?

• A)The equilibrium point will move from A to B.
• B)The equilibrium point will move from A to C.
• C)There will be no change in the equilibrium point.
• D)The equilibrium point will move from A to E.

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Definitions:

Processing Float

The time difference between when a transaction is initiated and when the funds are available in the account, affecting the usable balance.

Commercial Paper

Commercial paper refers to short-term, unsecured promissory notes issued by companies to finance their short-term liabilities.

Marketable Securities

Financial instruments that can be easily converted into cash, typically with high liquidity and short maturity periods.

Management of Cash

The strategies and practices employed by a firm to handle its cash flows, ensuring liquidity and operational efficiency.