A Company Is Considering a Rate Change, Either an Increase

Multiple Choice

A company is considering a rate change, either an increase or a decrease in production, where X_t = production in a time period; R_t = increase in production rate from Period t−1 to Period t; D_t = decrease in production rate from Period t−1 to Period t. Which of the following is correct?

A) X_t − X_{t - 1} = D_t − R_t
B) X_{t - 1} − X_t = D_t − R_t
C) X_{t - 1} − X_t = R_t − D_t
D) X_t − X_{t - 1} = R_t − D_t