The Difference Between a Change in Quantity Supplied and a Change

question 92

Multiple Choice

The difference between a change in quantity supplied and a change in supply is that a change in:

• A)​quantity supplied is caused by a change in a good's own, current price, while a change in supply is caused by a change in some other variable, such as input prices, prices of related goods, expectations, or taxes.
• B)​supply is caused by a change in a good's own, current price, while a change in the quantity supplied is caused by a change in some other variable, such as input prices, prices of related goods, expectations, or taxes.
• C)​quantity supplied is a change in the amount people want to sell, while a change in supply is a change in the amount they actually sell.
• D)​supply and a change in the quantity supplied are the same thing.

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Definitions:

Total Cost Approach

A method of analysis that involves assessing all costs associated with a decision, including initial costs and ongoing operational costs.

Discount Rate

The interest rate used in discounting future cash flows to present value, often reflecting the cost of capital or risk level.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in evaluating investment opportunities.

Internal Rate of Return

A financial metric used to evaluate the profitability of an investment, representing the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equal zero.