Answer:
The correct answer is option c.
Explanation:
A decrease in the supply will cause the supply curve to shift to the left. This leftward shift in the supply curve will further cause the demand and supply curve to intersect at a higher point.
As a result, there will be an increase in the equilibrium price and a decrease in the equilibrium quantity.
This also represented in the figure given below.
Answer:
d. Selling Price
Explanation:
Break even point is calculated as
Thus, break even point in units only in two cases,
Now, here the options are
a. Increase in units sales volume is of no relevance as will not impact the fixed cost or contribution per unit.
b. Increase in fixed cost will result in higher break even point, as numerator in the fraction will increase.
c. Increase in unit variable cost will ultimately decrease the contribution thus, it is of no relevance.
d. Increase in selling price will increase the contribution per unit, that is the increase in denominator value in fraction, thus, break even units will decrease.
Correct option is
d. Selling Price