If the Demand for Widgets Decreases, This Will

question 23

Multiple Choice

If the demand for widgets decreases, this will:

• A) increase the supply of inputs used to produce widgets.
• B) decrease the supply of inputs used to produce widgets.
• C) increase the demand for inputs used to produce widgets.
• D) decrease the demand for inputs used to produce widgets.

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Definitions:

Capital Expenditure

Resources utilized by a business to purchase, improve, and upkeep tangible assets like real estate, factories, or machinery.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities or equity on a company’s balance sheet.

Asset Account

An account on a balance sheet that represents a resource owned or controlled by a company, expected to produce future economic benefits.

Acquisition Cost

The total expense incurred to obtain an asset, including the purchase price and all related costs to ready the asset for its intended use.