A Decrease in Consumer Incomes Will Shift the Demand Curve

question 65

Multiple Choice

A decrease in consumer incomes will shift the demand curve for designer handbags to the and both the equilibrium price ________and________ quantity of designer handbags.

• A)right; increase
• B)left; increase
• C)left; decrease
• D)right; decrease

---

Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating its liquidity and operational efficiency.

Discount Factor

A multiplier used in discounted cash flow (DCF) analysis to calculate the present value of future cash flows, accounting for time value of money.

Salvage Value

The estimated residual value of an asset at the end of its useful life, often considered in depreciation calculations.

Cash Operating Costs

The expenses directly associated with the day-to-day operations of a business, excluding non-cash items like depreciation.