A Decrease in the Demand for the Output That an Input

question 62

Multiple Choice

A decrease in the demand for the output that an input produces will cause the input's:

• A) supply curve to shift to the right.
• B) supply curve to shift to the left.
• C) demand curve to shift to the right.
• D) demand curve to shift to the left.

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Definitions:

Present Value

The present-day value of a sum of money to be received in the future or a series of future cash flows, based on a certain return rate.

Cash Flow

A financial measurement that shows the net amount of cash and cash-equivalents being transferred into and out of a business over a specified period.

Annuity

A finite series of equal payments at equal intervals of time. In an ordinary annuity the payments occur at the ends of the time periods. In an annuity due, they occur at the beginnings.

Discounted Value

The present value of a future amount of money or a series of cash flows, adjusted for time value of money.