Assume That the Supply Curve for a Good Is Fixed

question 156

Multiple Choice

Assume that the supply curve for a good is fixed at 100 units. Now suppose that the demand curve for the good increases such that the equilibrium price rises from $20 to $30. How does total revenue for the sale of this product change?

• A) Total revenue rises by $1,000.
• B) Total revenue does not change.
• C) Total revenue rises by $3,000.
• D) Total revenue rises by $10.

Know the impact of sales technology on salespersons' productivity and customer service.

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Recognize the recommended sleep duration for young children and its importance.

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Definitions:

Weighted Average Cost

A method to calculate the average cost of goods produced or acquired, weighted by the quantities.

SML Approach

A representation of the Capital Asset Pricing Model (CAPM) that displays the expected return of a security as a function of its systemic risk.

Debt-To-Assets Ratio

A financial metric indicating the proportion of a company's assets that are financed by debt, used to assess the company's leverage and financial stability.

Flotation Costs

Expenses incurred by a company in issuing new securities, including fees to underwriters, legal fees, and printing costs.