Refer to the Figure Below: If the Price Is

question 46

Multiple Choice

Refer to the figure below: If the price is $16,the resulting

• A)surplus will lead to a fall in price.
• B)shortage will lead to a fall in price.
• C)surplus will lead to a rise in price.
• D)shortage will lead to a rise in price.

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Definitions:

Merger

Agreement in which two or more firms combine to form one company.

Acquisition

Agreement in which one company purchases another.

Leverage

Increasing the rate of return on funds invested by borrowing funds.

Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.