The Figure Below Shows the Demand (D) and Supply (S)

question 113

Multiple Choice

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-An upward-sloping supply curve of Korean won in terms of Canadian dollars indicates that:

• A)the higher the dollar price of Korean won, the more won will be demanded.
• B)the higher the dollar price of Korean won, the fewer won will be supplied.
• C)the lower the dollar price of Korean won, the more won will be demanded.
• D)the lower the dollar price of Korean won, the fewer won will be supplied.
• E)the Korean economy is stronger than the Canadian economy.

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Definitions:

Depreciation

The methodical distribution of the expense of a physical asset across its lifespan.

Projected NPV

The estimated Net Present Value of a project calculated using projected cash flows and a specific discount rate.

Pool Concept

A financial strategy where funds or resources are pooled together for a common purpose, often for investment or risk management.

Capital Cost Allowance (CCA)

A tax deduction in some jurisdictions for depreciation of assets, allowing businesses to write off the cost of assets over time.