Figure 11-3b -In Figure 11-3b,the Demand Curve Shifts from D₁ to D2.This

question 66

Multiple Choice

Figure 11-3b
-In Figure 11-3b,the demand curve shifts from D₁ to D2.This most likely represents

• A) an increase in demand that did not require a change in price but was the result of a change in one or more demand factors.
• B) an increase in demand that required a decrease in price.
• C) no change in price and a decrease in demand that results from internal business practice changes.
• D) no change in demand or price but a greater profit due to economies of scale.
• E) a decrease in price from $8 to $6 per unit.

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Definitions:

Financing Activity

Transactions and events where cash is raised from creditors and investors to fund the company’s operations and expansions.

Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, dividing activities into operating, investing, and financing activities.

Dividend Reinvestment Scheme

A plan offered by a corporation that allows investors to reinvest their cash dividends by purchasing additional shares or fractional shares on the dividend payment date.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and close to their maturity.