The Figure Below Shows the Demand (D) and Supply (S)

question 98

Multiple Choice

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-If $1 was equivalent to 120 Japanese yen in 2008 and 125 Japanese yen in 2010, it implies in 2010, there was:

• A)a depreciation of the dollar against the yen.
• B)a depreciation of the yen against the dollar.
• C)an appreciation of the yen against the dollar.
• D)no change in the value of yen, but the dollar had weakened.
• E)no change in the value of dollar, but the yen had strengthened.

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Definitions:

Vertical Mergers

A type of merger between companies in the same industry but at different stages of production or distribution processes.

Conglomerate Mergers

The combination of firms operating in unrelated business areas, aiming to diversify product offerings or reduce risk.

HHI

The Herfindahl-Hirschman Index, a measure of market concentration used to evaluate the potential for competitive behavior within an industry.

Beer Industry

A sector of the economy that focuses on producing and selling beer.