Which of the Following Will Increase the Demand for a Normal

question 26

Multiple Choice

Which of the following will increase the demand for a normal good?

• A)A decrease in the number of consumers
• B)A decrease in the price of a substitute
• C)An increase in consumer income
• D)An increase in the price of a complement
• E)An increase in the demand for a substitute

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Definitions:

Production Cost

The total expense incurred in manufacturing a product, including raw materials, labor, and overheads.

Unit Costs

The cost incurred to produce, store, and sell one unit of a product, including direct materials, labor, and overhead expenses.

Variable Costing

A costing method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Direct Labor

The wages and salaries paid to workers who are directly involved in the production of goods or the provision of services.