For the Supply Equation, Where X Represents the Quantity Supplied

question 50

Multiple Choice

For the supply equation, where x represents the quantity supplied in units of 1,000 and p is the unit price in dollars, determine the number of units of the commodity the supplier will make available in the market at the given unit price. Please round your answer to the nearest unit. 3x - 4p + 24 = 0; p = 8

• A) 2,967
• B) 2,667
• C) 2,567
• D) 3,167

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Definitions:

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales, indicating the percentage change in operating income for a one percent change in sales.

Total Revenue

The total amount of income generated by the sale of goods or services related to the company's primary operations.

Sensitivity Analysis

Sensitivity Analysis is a financial modeling technique that examines how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

Scenario Analysis

A technique used in finance to evaluate possible future events by considering alternative possible outcomes (scenarios).