Which of the Following Will Not Cause the Demand for Milk

question 187

Multiple Choice

Which of the following will not cause the demand for milk (a normal good) to increase in the current time period?

• A) a fall in the price of milk
• B) an increase in income
• C) an expected increase in milk prices
• D) a decrease in the price of cookies (a complement)

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Definitions:

Financial Asset

An intangible asset that derives value from a contractual right or ownership claim, such as stocks, bonds, or bank deposits.

Company's Profits

The financial gain realized when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain the activities.

Interest

The cost of borrowing money or the return earned on an investment, typically expressed as a percentage.

Accounting Period

A specific time period at the end of which an organization prepares financial statements.