You Have Been Asked by Your Economics Professor to Graph

question 143

Multiple Choice

You have been asked by your economics professor to graph the market for lumber and then to analyze the change that would occur in equilibrium price as a result of recent forest fires in the west.Your first step would be to

• A)decide which direction to shift the curve.
• B)decide whether the fires affected demand or supply.
• C)graph the shift to see the effect on equilibrium.
• D)None of the above is correct.

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Definitions:

Account Receivable

Money owed to a business by its clients or customers for goods or services delivered but not yet paid for.

Credit Terms

Terms for payment on account by the buyer to the seller.

Sales Discount

A reduction in the sale price offered by a seller to a buyer, usually to encourage prompt payment or to increase sales volume.

Invoice Date

Invoice Date refers to the date listed on an invoice, indicating when it was issued and often starting the timeline for payment due.