Which of the Following Explains the Effect of Prices on Profits

question 115

Multiple Choice

Which of the following explains the effect of prices on profits in the short-run?

• A)The direct relationship between aggregate quantity demanded and national output.
• B)The direct relationship between aggregate quantity supplied and the price level.
• C)The inverse relationship between aggregate quantity demanded and national output.
• D)The inverse relationship between aggregate quantity supplied and profits.
• E)The inverse relationship between aggregate quantity supplied and national output.

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Definitions:

Liquidation Process

The process of closing a business, selling its assets, and using the proceeds to pay off its debts, with any remaining funds distributed among shareholders.

Corporate Assets

resources owned by a corporation that have economic value and can be used to meet its financial obligations.

Articles of Merger

Legal documents filed with a governmental entity to officially merge two or more corporations, detailing the terms and conditions of the merger.

Voluntarily Dissolved

Referring to the intentional decision by the owners or stakeholders of a company to legally dissolve the corporation or business.