If the Price of Film Increases at the Same Time

question 6

Multiple Choice

If the price of film increases at the same time the cost of camera production increases,what will happen to the equilibrium price and quantity in the camera market?

• A)Price will increase,quantity will decrease
• B)Price will increase,quantity will increase
• C)Price will decrease,quantity will decrease
• D)Price will decrease,quantity will increase
• E)The new equilibrium price and quantity can not be determined

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Definitions:

Collecting Receivables

Collecting receivables involves the process or steps taken by a business to ensure that payments are received from customers for goods or services provided on credit.

Cash Cycle

The period of time between a company's purchase of inventory and the receipt of cash from accounts receivable.

Operating Cycle

The duration of time from the purchase of inventory to the collection of cash from sales, reflecting the efficiency of a company's operations.

Cash Flow Time Line

Graphical representation of the operating cycle and the cash cycle.