A Change in a Shift Factor of Demand Will Actually

question 15

Essay

A change in a shift factor of demand will actually cause both a change in quantity supplied and a change in quantity demanded. Explain why, and demonstrate with a graph.

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Definitions:

Indirect Method

A way of preparing a cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate cash flow from operating activities.

Operating Activities

Transactions and events related to the primary operations of a business, such as revenue from sales and expenses from operations.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Direct Method

A method of computing the net cash provided by operating activities in which the income statement is reconstructed on a cash basis from top to bottom.