Use the Following to Answer Question

question 67

Multiple Choice

Use the following to answer question:
-(Figure: Indifference Curves and Consumption Bundles) Use Figure Indifference Curves and Consumption Bundles.The lines AA and BC are parallel.The optimal consumption point could shift from b to c as a result of any of the following EXCEPT:

• A)an equal percentage increase in the prices of hot dogs and pizza while income is unchanged.
• B)a decrease in income with prices constant.
• C)a change in tastes.
• D)an equal percentage increase in the prices of hot dogs and pizza while income is unchanged or a decrease in income with prices constant.

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Definitions:

Debt-Equity Ratio

A financial measure that highlights the ratio of shareholders' equity to debt in a company's capital structure, often employed to scrutinize its leverage.

Flotation Cost

The overall expenses related to the issuance of new shares or bonds, encompassing fees for underwriting, legal services, and registration.

Startup Cost

Initial expenses incurred during the process of creating a new business, including but not limited to legal fees, marketing, and inventory costs.

Capital Structure

The composition of a company's liabilities and equity, including debt and equity financing, used to finance the company's operations and growth.