-Refer to the Above Graph to Answer This Question

question 122

Multiple Choice

-Refer to the above graph to answer this question.How could you describe the movement from point D to point A?

• A)A decrease in supply which leads to an increase in the equilibrium price and a decrease in demand.
• B)A decrease in supply which leads to an increase in the equilibrium price and a decrease in quantity demanded.
• C)A decrease in demand which leads to an increase in the equilibrium price and a decrease in the quantity supplied.
• D)A decrease in demand which leads to an increase in the equilibrium price and a decrease in supply.
• E)A decrease in supply which leads to a decrease in the equilibrium price a decrease in demand.

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Definitions:

Variable Cost

A cost that varies in direct proportion to changes in the level of production or sales volume, such as materials and direct labor.

Financial Advantage

A benefit or gain in financial terms, often seen as an upper hand in economic dealings or investments.

Variable Costs

Expenses that vary directly with the amount of activity or output in a company.

Financial Advantage

The benefit obtained by a business from its financial decisions and strategies.