Refer to the Above Diagram,in Which S₁ and D₁ Represent

question 141

Multiple Choice

Refer to the above diagram,in which S₁ and D₁ represent the original supply and demand curves and S₂ and D₂ the new curves.In this market:

• A) supply has decreased and equilibrium price has increased.
• B) demand has increased and equilibrium price has decreased.
• C) demand has decreased and equilibrium price has decreased.
• D) demand has increased and equilibrium price has increased.

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Definitions:

Cost of Goods Sold

Expenses directly tied to the production process of goods a company markets, including both materials and labor costs.

Accounts Receivable

The amount due from customers to a firm for the delivery of goods or services which remains unpaid.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including labor, materials, and manufacturing overhead.

Cash Cycle

The period it takes for a business to convert its inventory and other resources into cash flows from sales, effectively measuring the time span between purchasing raw materials and receiving cash from selling the final product.