For a Linear and Downward Sloping Demand Curve, When the Consumer

question 77

Multiple Choice

For a linear and downward sloping demand curve, when the consumer has to pay a positive price for the good, the value to the consumer is a

• A)Rectangle.
• B)Triangle.
• C)Four-sided figure that is a rectangle on the bottom and a right triangle on the top whose hypotenuse is the demand curve.
• D)Four-sided figure that is a rectangle on the bottom and a right triangle on the top whose hypotenuse is the supply curve.

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Definitions:

Double-Declining-Balance

An accelerated method of depreciation that doubles the regular depreciation rate, allowing for faster depreciation of assets in the early years.

Straight-Line

A method of calculating depreciation or amortization by dividing the difference between an asset's cost and its salvage value by the number of years it is expected to be used.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Capital Expenditures

Money spent by a firm on buying or improving hard assets such as land, factories, or equipment.