Use the Accompanying Graph to Answer the Following Questions

question 174

Essay

Use the accompanying graph to answer the following questions.

a.What is the equilibrium price and equilibrium quantity in this market?
b.Draw an increase in demand and explain what happens to the equilibrium price and equilibrium quantity.
c.This is a special type of supply curve that we call an inelastic supply curve.What special property does it have?

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Definitions:

Closing Process

The procedure at the end of an accounting period where income and expense accounts are cleared out to start the new period with a zero balance.

Revenues and Expenses

Pertains to the income generated from normal business operations and the costs incurred to generate that income, crucial for determining net profit.

Special Account

A unique account that is established for a specific purpose, often outside the regular operations or financial structure.

Retained Earnings

The portion of a company's profits that is kept or retained for reinvestment in the business, rather than being paid out as dividends.