-Suppose a Change Takes Place and the New Equilibrium Is

question 92

Multiple Choice

-Suppose a change takes place and the new equilibrium is at point A in the above figure. This change could have been caused by

• A)an increase in the per-unit tax on CDs.
• B)a decrease in the income of consumers.
• C)a reduction in the wages paid to workers in the CD industry.
• D)a reduction in the price of CD players.

---

Definitions:

Straight-Line Methods

Straight-line methods are used in accounting to allocate the cost of an asset evenly over its useful life for the purposes of depreciation.