Exhibit 3-4 -Refer to Exhibit 3-4. If S₁ and D₁ Are the D₁

question 11

Multiple Choice

Exhibit 3-4
-Refer to Exhibit 3-4. If S₁ and D₁ are the original supply and demand curves and they shift to S₂ and D₂, respectively, then the new equilibrium price and quantity will be

• A)P₂ and Q₄.
• B)P₄ and Q₂.
• C)P₁ and Q₃.
• D)P₃ and Q₁.
• E)P₄ and Q₁.

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Definitions:

Future Costs

Costs that are expected to be incurred in future periods as opposed to those already incurred or realized.

Bill And Hold Basis

An arrangement where a seller bills a customer for products but holds onto the inventory until it is actually needed or requested by the customer.

Sales Agreement

A detailed contract which outlines the terms of sale of goods or services between two parties.

Earnings Management

The practice of using accounting techniques to produce financial reports that present an overly positive view of a company's business activities and financial position.