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Related to the Economics in Practice on P

question 3

Multiple Choice

Related to the Economics in Practice on p. 77: If the supply of generators decreased and the equilibrium price of generators decreases, the demand for generators ________ and total revenue from the sale of generators ________.


Definitions:

Declining Balance

Declining balance is a method of accelerated depreciation in which an asset's book value is reduced at a faster rate in the early years of its life.

Straight-Line

A method of calculating depreciation of an asset where the asset's cost is evenly spread over its useful life.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value over time.

Securities and Exchange Act

A U.S. law enacted in 1934 to regulate the securities industry and mandate disclosure of important financial information for publicly traded companies.

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