In the Figure Above,if Price DECREASES from $60 to $40,an

question 62

Multiple Choice

In the figure above,if price DECREASES from $60 to $40,an arrow representing the QUANTITY effect

• A)will point downward.
• B)will be shorter than and in opposite direction of)the arrow representing the price effect.
• C)will be shorter than and in same direction of)the arrow representing the price effect.
• D)will point in the direction in which total revenue will move.
• E)both a and d

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Definitions:

Cash Balance

The amount of money on hand or in bank accounts, immediately available to a business or individual.

Money Paid Out

The total amount of money a company or individual spends or disburses.

Average Collection Period

The average number of days it takes for a company to receive payment after a sale has been made on credit.

Accounts Receivables

Money owed to a business by its customers for goods or services that have been delivered or used but not yet paid for.