Assume That an Increase in the Demand for Motorcycles Led

question 45

Multiple Choice

Assume that an increase in the demand for motorcycles led to an increase in the demand for motorcycle helmets.Based on this information,which of the following is likely to be true?

• A)Motorcycles and motorcycle helmets are considered to be substitute goods.
• B)The increase in demand for helmets will be represented as a movement along the demand curve for motorcycle helmets.
• C)Helmets are considered to be inferior goods.
• D)With an increase in the demand for motorcycles,the demand curve will shift inward toward the origin.
• E)The coefficient associated with the price of helmets will be negative in the demand equation for motorcycles.

---

Definitions:

Net Income

Net income is the total earnings of a company after subtracting all expenses and taxes from total revenue, indicating the company's profitability over a specific period.

Current Ratio

The current ratio is a liquidity ratio that measures a company's ability to cover its short-term liabilities with its short-term assets.

Short-Term Debt

Borrowings that are due for repayment within one year, used to finance immediate expenses or working capital requirements.

Common-Sized Income Statement

A financial statement in which all items are expressed as a percentage of sales, facilitating comparison with other periods or companies.