A Decrease in the Expected Future Price of Cars

question 478

Multiple Choice

A decrease in the expected future price of cars

• A) increases the current quantity demanded of cars, that is, there is a movement downward along the demand curve for cars.
• B) decreases the current demand for cars, that is, there is a leftward shift of the demand curve for cars.
• C) increases the current demand for cars, that is, there is a rightward shift of the demand curve for cars.
• D) decreases the current quantity demanded of cars, that is, there is a movement upward along the demand curve for cars.

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Definitions:

Obsolescence

The process through which a product or technology becomes outdated and no longer used, often due to advancements or changes in consumer preferences.

Depletion

An accounting method used to allocate the cost of extracting natural resources, such as minerals or timber, from the earth, reflecting the consumption of the resource over time.

Expense Account

An account used in accounting to record costs or expenses incurred by a business or individual for operational purposes.

Metal Ores

Naturally occurring solid materials from which metals can be extracted through mining and processed for use.