Consider the Graph

question 148

Multiple Choice

Consider the graph.What would most likely be the cause of a shift from D1 to D2?

• A) A tax on sellers
• B) A tax on buyers
• C) A subsidy for sellers
• D) A subsidy for buyers

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Definitions:

Net 30 Credit Policy

A Net 30 credit policy is a payment term that allows customers to pay the full invoice amount within 30 days after the invoice date.

Monthly Interest Rate

The Monthly Interest Rate is the percentage of interest that is charged or earned on an amount of money over a month.

Variable Cost

Costs that vary directly with the level of production or volume of output, such as raw materials and direct labor expenses.

Restocking Costs

Expenses incurred when replenishing inventory, including purchasing, shipping, and handling costs.