In the Short Run,in Response to an Increase in Demand,producers

question 94

Multiple Choice

In the short run,in response to an increase in demand,producers will typically choose _______ prices,but rather to meet the increased demand at _______ prices.

• A) to raise;preset
• B) to cut;variable
• C) not to raise;preset
• D) not to raise;variable
• E) to cut;preset

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Definitions:

Net Income

The net income of a business, which remains after deducting all costs, taxes, and expenses from the gross revenue.

Deferred Tax Asset Account

An account on the balance sheet representing taxes paid or carried forward but not yet realized, which can be used to offset future tax liabilities.

Earnings Quality

An assessment of the reliability and sustainability of a company's earnings, considering its ability to generate cash flow.

Effective Income Tax Rate

This rate is the average percentage that companies or individuals pay in taxes on their taxable income.