The Figure Given Below Shows the Demand Curve Faced by a Firm

question 21

Multiple Choice

The figure given below shows the demand curve faced by a firm. Figure 10.1 Refer to Figure 10.1 and calculate the revenue gained by the firm when it reduces the price of its product from $8 to $4.

• A)$4
• B)$8
• C)$32
• D)$16
• E)$10

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Definitions:

Inventory Turnover

A ratio showing how many times a company has sold and replaced inventory over a given period, indicating efficiency in inventory management.

Equity Multiplier

A financial ratio that measures a company's leverage by dividing total assets by total shareholders' equity.

Year 2

Refers to the second year in a given context, often used in financial and performance analysis.

Equity Multiplier

A ratio showing the comparative use of debt versus shareholders' equity in funding a company's assets.