​Figure 52

question 59

Multiple Choice

​Figure 5.2. The figure shows the supply and demand curves of a firm.
-Which of the following statements is true?​

• A)​With an increase in the demand for health care, the quantity supplied increases but supply does not change.
• B)​With an increase in the demand for health care, the supply curve shifts to the right.
• C)​With an increase in the demand for health care, the supply curve shifts to the left.
• D)​With an increase in the demand for health care, the price of the product decreases.
• E)​With an increase in the demand for health care, the quantity supplied decreases but the supply does not change.

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Definitions:

Cost of Goods Sold

The total direct costs attributed to producing goods, including materials and labor, which are sold during a certain period.

Total Asset Turnover

A financial ratio that measures a company’s effectiveness in using its assets to generate sales revenue.

Inventory Turnover

A ratio that shows how many times a company's inventory is sold and replaced over a specified period, indicating the efficiency of inventory management.

Operating Cycle

The amount of time it takes for a business to purchase inventory, sell products, and receive cash in exchange for those products, reflecting the efficiency of a company's cash flow.