The Graph Shown Portrays a Subsidy to Buyers

question 17

Multiple Choice

The graph shown portrays a subsidy to buyers.The subsidy causes:

• A) 50 more units to be sold in this market.
• B) 150 more units to be sold in this market.
• C) 100 fewer units to be sold in this market.
• D) 50 fewer units to be sold in this market.

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Definitions:

Operating Loan

Loan negotiated with banks for day-to-day operations.

Bank

A financial institution licensed to receive deposits, offer loans, and provide various financial services, such as currency exchange and wealth management.

Accounts Receivable Turnover

A financial metric indicating how many times a company collects its average accounts receivable balance in a year.

Cash Cycle

The duration of time it takes for a company to convert its investments in inventory back into cash through sales.