According to the Following Figure,the Movement from Point (4,3)to Point

question 76

Multiple Choice

According to the following figure,the movement from point (4,3) to point A is a function of ________,while the subsequent movement from point A to point (2,3) results from ________.

• A) an increase in the price of pizza; a decrease in the price of Pepsi
• B) a decrease in the price of pizza; an increase in the price of Pepsi
• C) a combination of the substitution and real-income effects; a decrease in the price of pizza
• D) the substitution effect alone; the real-income effect alone
• E) the real-income effect alone; the substitution effect alone

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Definitions:

Corporate Tax Rate

The tax imposed on the net income of a corporation, varying by country and sometimes within jurisdictions of countries.

Dividend-payout Ratio

A financial ratio that shows the percentage of a company's earnings that is paid out to shareholders as dividends.

Anticipated Growth Rate

An expectation of the rate at which a company, asset, or economy will grow in a future period, often used in investment analysis.

Return On Equity

A measure of a corporation's profitability, indicating how much profit a company generates with the money shareholders have invested.