Use the Figure Below to Answer the Following Questions

question 78

Multiple Choice

Use the figure below to answer the following questions. Figure 3.5.2
Original equilibrium at 1.
-Refer to Figure 3.5.2,which represents the market for cow manure.If the price of milk,a complement in production of manure,rises,what is the new manure equilibrium,ceteris paribus?

• A)8
• B)3
• C)9
• D)5

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Definitions:

Debit

An accounting entry that increases asset or expense accounts, or decreases liabilities or equity accounts, recorded on the left side of an accounting ledger.

Merchandise Inventory

Goods and products that a retailer or wholesaler has on hand to sell to customers.

Buyer

A person or organization that purchases goods or services for personal use or consumption.

Asset

Assets possessed by a corporation that hold financial worth and can yield advantages in the future.