In Which Statement Is the Term "Demand" Used Correctly? (1)A

question 114

Multiple Choice

In which statement is the term "demand" used correctly? (1) A decrease in the price of airline tickets led to an increase in quantity demanded for airline tickets.(2) A decrease in the price of airline tickets led to an increase in the demand for airline tickets.

• A)neither statement
• B)the first statement only
• C)the second statement only
• D)both statements
• E)more information is needed

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue by comparing net credit sales to the average accounts receivable over a period.

Inventory Turnover

A ratio that shows how often a company's inventory is sold and replaced over a specific period, indicating efficiency in managing stock levels.

Capital Structure

The combination of a business's long-term loans, particular short-term borrowings, common stock, and preferred stock, employed to fund its general activities and expansion.

Retained Earnings

The portion of a company's profits that are kept within the company instead of being paid out to the shareholders as dividends.