Figure 3-8 -Refer to Figure 3-8.The Graph in This Figure Illustrates an Figure

question 91

Multiple Choice

Figure 3-8
-Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for sugar at the intersection of D₁ and S₂ (point B) .If there is a decrease in the price of fertilizer used on sugar cane and there is a decrease in tastes for sugar-sweetened soft drinks,how will the equilibrium point change?

• A)The equilibrium point will move from B to A.
• B)The equilibrium point will move from B to C.
• C)There will be no change in the equilibrium point.
• D)The equilibrium point will move from B to E.

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Definitions:

Compounded Quarterly

The process where interest is added to the principal sum of a deposit or loan every quarter, so that the added interest also earns interest from then on.

Final Payment

The last payment made to settle the balance of a financial obligation, such as a loan or mortgage.

Borrower

An individual, company, or institution that receives funds from a lender under the condition of paying back the borrowed amount plus interest.

Compounded Monthly

Interest calculated monthly on the principal sum plus previously earned interest.