Figure 4-10 -Refer to Figure 4-10.The Movement from Point a to Point

question 50

Multiple Choice

Figure 4-10
-Refer to Figure 4-10.The movement from Point A to Point B represents a(n)

• A)increase in the price.
• B)decrease in the quantity supplied.
• C)shift in the supply curve.
• D)Both a and b are correct.

---

Definitions:

Price/Earnings Ratio

A financial ratio that compares a company's share price to its earnings per share, indicating the value that investors are ready to pay for each dollar of earnings.

Market Price

The current price at which an asset or service can be bought or sold.

Working Capital

The dollar difference between total current assets and total current liabilities.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.