Which of the Following Would Cause Both the Equilibrium Price

question 330

Multiple Choice

Which of the following would cause both the equilibrium price and equilibrium quantity of day-old bread (an inferior good) to increase

• A)an increase in consumer income
• B)a decrease in consumer income
• C)greater government restrictions on agricultural chemicals
• D)fewer government restrictions on agricultural chemicals

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Definitions:

Expected NPV

The anticipated Net Present Value of an investment, calculated using expected cash flows and discounting them to their present value.

Project's Risk

The potential for losses or less-than-expected returns from a specific investment or business project.

Risk

The potential for losing something of value, often measured by the variability of returns associated with an investment.

Cash Flow Estimating

The process of projecting the future cash inflows and outflows of a project or company to determine its financial health.