If Incomes Increase, Then the ____ in the Market for Luxury

question 60

Multiple Choice

If incomes increase, then the ____ in the market for luxury cars as normal goods ____.

• A)supply; decreases
• B)supply; increases
• C)demand; increases
• D)demand; decreases
• E)both supply and demand; increase

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Definitions:

Equity Multiplier

A financial leverage ratio that measures the portion of a company’s assets that are financed by stockholders’ equity, indicating the level of debt used to finance assets.

Current Ratio

An indicator of a company's proficiency in paying off its short-term dues using the assets it currently possesses.

Debt-to-equity Ratio

A financial benchmark indicating the proportional use of debt and equity in the financing strategy for a company's assets.

Times Interest Earned Ratio

A financial metric assessing a company's ability to meet its interest obligations from operating earnings.