Suppose That Over the Next Few Years the Demand for Dancing

question 256

Multiple Choice

Suppose that over the next few years the demand for dancing to country and western music decreases.Hence,at country and western dance clubs the equilibrium price of admission ________ and the equilibrium quantity of dancing ________.

• A) rises; increases
• B) rises; decreases
• C) falls; increases
• D) falls; decreases
• E) does not change; decreases

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Definitions:

Useful Life

The estimated duration of time that an asset is expected to be productive for the purpose it was acquired for.

Annual Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue for a one-year period.

Accounting Rate

Often referred to as the rate of return, it is a measure used in accounting to evaluate the profitability of investments or compare the efficiency of different investments.

Annual Average Investment

The average amount invested over a year, generally calculated to evaluate the efficiency or profitability of investments.