FIGURE 3-1 -Refer to Figure 3-1.A Shift of the Demand Curve for Curve

question 92

Multiple Choice

FIGURE 3-1
-Refer to Figure 3-1.A shift of the demand curve for energy-efficient light bulbs from D to D¹ could be caused by

• A)a decrease in the price of ordinary light bulbs.
• B)a news bulletin stating that energy-efficient light bulbs emit a harmful gas.
• C)a decrease in the price of energy-efficient light bulbs.
• D)an expectation that government regulation will soon prohibit the use of ordinary light bulbs.
• E)a change in preferences toward ordinary light bulbs.

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, which can own assets, incur liabilities, and engage in business and legal activities.

Limited Liability

A legal structure that protects individual investors or company owners from being personally responsible for company debts and liabilities beyond their investment.

Stockholders' Equity

The ownership interest of shareholders in a company, calculated as the company's total assets minus its total liabilities.

Personal Assets

Assets owned by an individual as opposed to those owned by a business or an institution.