Some Producers Are Chatting Over a Beer

question 68

Multiple Choice

Some producers are chatting over a beer. Which one of the following quotations refers to a rightward shift of the supply curve?

• A)"Wage increases have forced us to raise our prices."
• B)"Our new, sophisticated equipment will enable us to undercut our competitors."
• C)"Raw material prices have sky-rocketed; we will have to pass the cost on to our customers."
• D)"We anticipate a big increase in demand. Our product price should rise, so we are planning for an increase in output."
• E)"Competitors are leaving the industry."

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Definitions:

Partnership Liabilities

Obligations that arise during the course of a partnership's operation that all partners are typically jointly and severally responsible for.

Liquidated Assets

are assets that have been converted into cash or cash equivalents by selling them on the open market.

Wrongful Dissolution

The improper termination of a partnership or corporate entity in violation of agreements or legal provisions.

Partnership Agreement

A formal contract between two or more parties to manage and operate a business and share its profits or losses.