A Decrease in the Price of a Good or Service

question 196

Multiple Choice

A decrease in the price of a good or service leads to a(n) ________ that leads to a(n) ________.

• A) decrease in demand; movement along the demand curve
• B) increase in quantity demanded; movement along the demand curve
• C) increase in demand; shift of the demand curve
• D) decrease in quantity demanded; shift of the demand curve

Calculate and explain the effects of buying back stock on the market price per share.

Journalize various stock-related transactions within a fiscal year, including stock splits, stock dividends, and sales of stock.

Prepare a retained earnings statement accounting for dividends and understand its relation to stockholder equity.

Understand the impact of stock transactions (including reacquisitions and sales) on a company's financial statements.

---

Definitions:

Distributor

An entity that buys non-competing products or product lines, warehouses them, and resells them to retailers or direct to the end users or customers.

Intermediaries

Intermediaries are agents or businesses that act as middlemen in the distribution process, linking producers with consumers or other businesses.

Retailer

A business entity that sells goods or commodities directly to consumers, typically in small quantities.