The Figure Given Below Represents the Equilibrium Price and Output

question 31

Multiple Choice

The figure given below represents the equilibrium price and output in the market for restaurant meals and delivery meals. Figure 4.1
- Refer to Figure 4.1.Which of the following is represented by this figure?

• A)Delivery meals and restaurant meals are complementary goods.
• B)When producers of delivery and restaurant meals change their preferences,the consumers respond.
• C)The increase in demand for delivery meals could have been caused by a change in consumers' tastes.
• D)The fall in demand for restaurant meals was caused by an increase in the price for restaurant meals.
• E)The demand for delivery meals is less elastic than that for restaurant meals.

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Definitions:

Accounting Figures

Quantitative values or financial numbers that are recorded from business transactions in the financial statements.

Actual Cash Flows

The real movement of money in and out of a business or investment, excluding any projections or estimates.

Cash Flow Position

An assessment of the amount of cash a company generates and uses during a period.

Times Interest Earned Ratio

A financial metric calculating how many times a company can cover its interest payments on outstanding debt with its earnings before interest and taxes.