Between 2000 and 2010,the Price of a PC Fell and the Quantity

question 5

Multiple Choice

Between 2000 and 2010,the price of a PC fell and the quantity of PCs sold increased.Which of the explanations below is consistent with these facts?

• A) The demand for PCs increased by more then the supply of PCs increased.
• B) The supply of PCs increased by more than the demand for PCs increased.
• C) The demand for PCs decreased by more than the supply of PCs increased.
• D) Both the supply of PCs and the demand for PCs decreased.

Recognize the importance of research and analysis in developing business exit strategies.

Comprehend the nature and stages of business growth.

Identify the roles and duties of managers in a growing business.

Understand the transition of small businesses to professional management including delegation.

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Definitions:

Relevant Range

The range of activity within which assumptions about variable and fixed cost behavior are valid.

Activity Level

The volume of production or the degree of activity in a business operation, which can affect variable costs.

Earn Income

The process of receiving payment through work, investments, or business operations.

Unit Variable

A measurement that reflects how variable costs change per unit of production or activity level.