One Reason Why the Quantity Demanded of a Good Increases

question 42

Multiple Choice

One reason why the quantity demanded of a good increases when its price falls is that the:

• A)lower price shifts the supply curve to the left.
• B)lower price shifts the demand curve to the left.
• C)lower price shifts the demand curve to the right.
• D)lower price increases the real incomes of buyers, enabling them to buy more.

---

Definitions:

Current Revenues

Income received by an entity within its normal business operations and within the current accounting period.

Lower-Of-Cost-Or-Market

An accounting principle that values inventory at the lesser of its historical cost or the market replacement cost, ensuring inventory is not overstated.

Inventory Valuation

The method used to calculate the cost associated with an inventory, which can impact the cost of goods sold and net income.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, indicating the company's actual financial performance over a specific period.