The Law of Demand Is Illustrated When

question 212

Multiple Choice

The law of demand is illustrated when:

• A) an increase in tuition encourages more students to enroll in college because the quality of education has risen.
• B) an increase in the purchases of personal computers results from lower prices.
• C) higher oil prices cause oil companies to drill for new sources of oil.
• D) higher fees for the use of public golf courses force golfers to purchase fewer golf balls.

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Definitions:

Operating Activities

Operating activities involve the primary revenue-generating activities of an organization, including production, sales, and delivery of the company’s product as well as administrative and general expenses.

Salaries Expense

The cost incurred by a business to pay its employees for services rendered during a specific period.

Unearned Revenues

Money received by a company for goods or services yet to be delivered or performed, recorded as a liability.

Operating Cash Payments

Cash outflows related to the primary revenue-generating activities of a business, such as payments to suppliers and employees.