With a Downward Sloping Demand Curve and an Upward Sloping

question 217

Multiple Choice

With a downward sloping demand curve and an upward sloping supply curve for a product, an increase in incomes will:

• A)increase equilibrium price and quantity if the product is a normal good.
• B)decrease equilibrium price and quantity if the product is a normal good.
• C)have no effect on equilibrium price and quantity.
• D)reduce the quantity demanded, but not shift the demand curve.

---

Definitions:

Customer Value

The perception of worth that a product or service has in the mind of the consumer, often influencing their buying decisions.

Internal Accounting Systems

The set of procedures and records that a company's management uses for financial planning, analysis, and decision making within the company.

Dysfunctional Results

Outcomes of processes or activities that negatively affect the goals or functioning of an organization.

External Failure Cost

Costs incurred when a defective product or service is discovered after delivery to the customer, including returns, repairs, and lost sales.