Refer to the information provided in Figure 11.3 below to answer the questions that follow. 
Figure 11.3
-Refer to Figure 11.3. A decrease in aggregate supply is represented by
Definitions:
Warranty
A guarantee provided by a seller that a product will meet certain performance standards or an offer to repair or replace defective goods within a certain time frame.
Implicit Rate Of Return
An interest rate that equates the present value of expected future cash flows of an investment to its initial cost.
Incremental Borrowing Rate
The interest rate a lessee would have to pay to borrow on a collateralized basis over a similar term the funds necessary to purchase an asset.
Capital Lease
A lease agreement that grants a lessee control over an asset for a substantial portion of its useful life, and is recorded as an asset and liability on the balance sheet.
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